For the Quarter Ending March 2025
North America
During the first quarter of 2025, the North American market for Treated Distillate Aromatic Extract (TDAE) experienced a relatively stable pricing environment with slight downward pressure. Prices saw a minor decline compared to the previous quarter, primarily due to subdued demand and favorable supply conditions. The automotive sector, a key consumer of TDAE, experienced weaker demand for tires and rubber products, which contributed to the overall softness in the market.
On the supply side, production levels remained steady, supported by adequate availability of raw materials and stable refinery operations. However, logistical disruptions, including transportation delays, were noted but did not significantly disrupt supply flows.
The market was further influenced by fluctuating feedstock costs, with some downward pressure from lower crude oil prices during the quarter. Despite these factors, TDAE prices remained relatively stable, with slight reductions driven by cautious demand from downstream industries and an oversupply situation in certain regions. Overall, the quarter concluded with a modest price decrease in the market.
APAC
During the first quarter of 2025, the APAC Treated Distillate Aromatic Extract (TDAE) market experienced a 7% price increase compared to the previous quarter. Early in the quarter, production remained steady, supported by consistent feedstock availability and operational stability in refining processes. In February, concerns over potential supply disruptions due to Ramadan in the coming month prompted manufacturers in India and Malaysia to begin restocking activities, which contributed to the price increase. The market saw a rise in prices due to heightened demand from the automotive sector, along with proactive stockpiling. This was further bolstered by lower upstream crude oil prices, which helped keep production costs manageable. In March, market activity remained subdued due to the seasonal slowdown during Ramadan, particularly in Malaysia, where manufacturing output decreased. However, consistent demand from the automotive sector in India helped sustain price stability, offsetting weak demand from the rubber industry and logistical inefficiencies. The overall pricing environment reflected cautious optimism amid balanced supply and demand dynamics.
Europe
During the first quarter of 2025, the European Treated Distillate Aromatic Extract (TDAE) market experienced a slight decline in prices compared to the previous quarter. This price drop was mainly driven by weaker demand from key industries, particularly the automotive sector, which saw reduced activity in tire manufacturing. The overall demand for TDAE in rubber production slowed due to ongoing economic challenges and reduced industrial output in some regions. On the supply side, production levels remained steady, supported by adequate feedstock availability and stable refinery operations. However, logistical challenges, such as port congestion and transportation delays, were noted but did not majorly disrupt supply chains. Additionally, fluctuations in crude oil prices throughout the quarter contributed to some cost variability, placing slight downward pressure on prices. Despite these factors, TDAE prices remained relatively stable with only a minor decrease during the quarter. The reduced demand from key end-use industries and ongoing logistical issues were the primary factors influencing the price trend in Europe.
