Quarter Ending September 2025
North America
• The Treated Distillate Aromatic Extract (TDAE) Price Index fell quarter-over-quarter in Q3, reflecting subdued demand from tire and rubber processing sectors.
• The TDAE Price Forecast suggests limited upside in Q4 amid cautious restocking and slow recovery in automotive manufacturing.
• The TDAE Production Cost Trend remained stable, supported by steady domestic refinery operations and access to competitively priced crude feedstocks.
• Weekly movements in the Price Index were neutral to soft, supported by balanced supply and consistent plant operations.
• Port logistics remained efficient, ensuring stable product availability, though minor disruptions in container repositioning were reported in early Q3.
Why did the price of TDAE change in September 2025 in North America?
• Prices decreased due to low offtake from tire and rubber manufacturers, despite expectations of seasonal demand recovery.
• Stable feedstock costs and uninterrupted production maintained supply, limiting upward price momentum.
• Sufficient spot availability and cautious procurement behavior kept sellers from raising offers, sustaining a soft market tone.
APAC
• In Malaysia, the TDAE Price Index fell by 5.2356% quarter-over-quarter, amid congestion.
• The average TDAE price for the quarter was approximately USD 1146.33/MT FOB.
• TDAE Spot Price eased on lower feedstock costs and softer Asian crude.
• TDAE Production Cost Trend softened as Asian crude eased, lowering refinery expenses.
• TDAE Demand Outlook remains muted amid subdued automotive exports and cautious restocking.
• TDAE Price Index volatility was tempered by stable inventories and export buying.
• TDAE Price Forecast suggests modest late quarter recovery supported by festival stocking.
• Export demand constrained while port congestion elevated logistics, influencing the TDAE Price Index.
Why did the price of TDAE change in September 2025 in APAC?
• Supply-side crude volatility and refinery cost swings tightened margins, pressuring domestic TDAE availability and pricing.
• Weaker automotive exports softened demand, and delays in purchases moderated the TDAE Price Index.
• Port congestion and higher freight costs increased logistics expenses, amplifying short-term supply bottlenecks.
Europe
• The TDAE Price Index fell quarter-over-quarter in Q3, reflecting subdued demand from tire and rubber processing sectors.
• The TDAE Price Forecast suggests limited upside in Q4 amid cautious restocking and slow recovery in automotive manufacturing and construction-related rubber applications.
• The TDAE Production Cost Trend remained stable, supported by steady refinery operations and access to competitively priced aromatic feedstocks.
• Weekly movements in the Price Index were neutral to soft, supported by balanced supply and consistent plant operations.
• Port logistics and inland transport remained stable, ensuring adequate product availability across key European hubs.
Why did the price of TDAE change in September 2025 in Europe?
• Prices decreased due to low offtake from tire and rubber manufacturers, despite expectations of seasonal demand recovery.
• Stable feedstock costs and uninterrupted production maintained supply, limiting upward price momentum.
• Sufficient spot availability and cautious procurement behavior kept sellers from raising offers, sustaining a soft market tone.
For the Quarter Ending June 2025
North America
• The Treated Distillate Aromatic Extract Price Index in North America remained largely flat during Q2 2025 as automotive manufacturing activity showed mixed trends amid cautious consumer spending and high interest rates.
• The Treated Distillate Aromatic Extract Production Cost Trend was balanced due to relatively stable domestic refinery operations and access to competitively priced crude feedstocks.
• Port logistics in key U.S. terminals were efficient, ensuring stable product availability, though there were minor disruptions in May related to container repositioning issues.
• The Treated Distillate Aromatic Extract Demand Outlook in North America was steady to soft, particularly in the tire replacement market segment, while original equipment demand remained moderate due to fluctuating automotive assembly rates.
Why did the price of Treated Distillate Aromatic Extract change in July 2025 in North America?
• In North America, the TDAE Price Index decreased modestly in July 2025, primarily due to subdued demand from downstream automotive manufacturers.
• Tire manufacturers reduced procurement volumes amid excess inventories and seasonal weakness in vehicle production.
• Flat upstream crude pricing and stable feedstock availability further reduced cost pressure on prices.
Europe
• The Treated Distillate Aromatic Extract Price Index in Europe showed minimal changes during Q2 2025, supported by stable market fundamentals despite sluggish macroeconomic indicators in major economies like Germany and France.
• The Treated Distillate Aromatic Extract Production Cost Trend was neutral, with stable energy and crude input costs throughout the quarter; however, higher carbon compliance charges continued to weigh on long-term margins.
• European producers faced competitive pressure from Asian and Middle Eastern exporters, especially as regional consumption from tire and rubber goods manufacturers showed only modest growth.
• The Treated Distillate Aromatic Extract Demand Outlook remained tepid, with European buyers adopting conservative purchasing strategies due to high warehouse inventories and uncertainty in industrial production.
Why did the price of Treated Distillate Aromatic Extract change in July 2025 in Europe?
• In Europe, the TDAE Price Index declined in July 2025 as market players faced excess supply and muted demand from the tire and rubber industries.
• Buyers remained cautious, minimizing contract volumes and delaying spot purchases.
• Additionally, Asian suppliers offered lower-cost cargoes, increasing competition and forcing domestic players to reduce prices to maintain market share.
Asia-Pacific (APAC)
• The Treated Distillate Aromatic Extract Price Index in Malaysia increased marginally by 0.3% quarter-over-quarter during Q2 2025, indicating stable market fundamentals with localized supply-side pressures.
• The Treated Distillate Aromatic Extract Production Cost Trend remained stable overall but showed upward momentum toward June due to rising geopolitical risks in upstream crude oil markets and elevated port logistics costs in Malaysia.
• Steady manufacturing output was maintained despite port congestion at Port Klang, which regularly exceeded 80%-yard capacity and created shipment backlogs, increasing handling costs.
• Domestic Treated Distillate Aromatic Extract Demand Outlook was muted during Q2, especially in May, as tyre production declined following the announced closure of Continental’s Kedah plant. However, optimism persisted due to planned investments from Chinese tyre manufacturers in the region.
• Export demand from India, China, and Japan remained strong, sustaining pricing support and reinforcing Malaysia’s status as a competitive regional supplier.
Why did the price of Treated Distillate Aromatic Extract change in July 2025 in Asia-Pacific (APAC)?
• In Malaysia, the TDAE Price Index declined slightly in July 2025 due to easing geopolitical concerns that had previously driven crude oil volatility.
• Despite continued port congestion at Port Klang, domestic inventory levels remained adequate, allowing suppliers to meet steady export demand without aggressive pricing.
• Buyers in key markets like India and China exercised caution, placing only essential orders, which capped upward momentum and resulted in a minor price correction.
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.
