TAED Prices Rise in China, Bolstered by Increase Demand from International Markets
- 05-Oct-2024 2:00 AM
- Journalist: Francis Stokes
The Asian TAED (Tetra Acetyl Ethylene Diamine) market saw a substantial increase of about 11%, settling at USD 5,390 MT FOB Shanghai in September 2024. This price hike was primarily driven by reduced availability of the product and a partial improvement in demand from the downstream surfactant industry, particularly during the festive Mid-Autumn season, known for Silver September and Golden October.
Despite a 1.4% drop in Acetic Anhydride prices and stable Ethylene prices in September 2024, production costs for TAED increased. Several plant shutdowns contributed to limited TAED production across Asia. Notable facilities, including Wanglong Tech Co., Ltd. in Yuyao (13,333 MT/year capacity) and Shandong Jiachi New Chemical Co., Ltd. in Zaozhuang (8,333 MT/year capacity), underwent maintenance in the first half of September 2024, affecting overall production. Additionally, multiple Ethylene plants were reported to be in maintenance or shut down due to the Mid-Autumn holiday, such as Sinopec Sabic Tianjin Petrochemical Co., Ltd. (108,333 MT/year), Fujian Gulei Petrochemical Company (83,334 MT/year), and Sinopec Zhongyuan Petrochemical (11,611 MT/year).
Demand for TAED (Tetra Acetyl Ethylene Diamine) across Asia experienced a notable improvement during the holiday season, which significantly enhanced transactions within the fast-moving consumer goods (FMCG) sector. This seasonal uptick can be attributed to increased consumer activity and spending, as people often purchase more personal care and household products during festive periods. Insights drawn from China's dynamic beauty market suggest that brands should strategically focus on three critical areas to optimize their offerings: understanding consumers, refining product formulations, and enhancing distribution channels creating a positive demand for TAED. In 2024, moisturizers emerged as a dominant force within the skincare category, accounting for an impressive 62.9% of total sales in that segment. This substantial figure reflects a robust growth rate of 9.5%, contributing to an overall skincare market growth rate of 4.2%. Furthermore, it is noteworthy that online sales have come to dominate the skincare market, representing over 80% of total sales and continuing on an upward movement in the prices
TAED price inflation in China was further supported by improved demand from the US market, where consumer spending increased by 0.2% in August, according to data from the American Chemistry Council. This growth was driven by higher spending on services, potentially leading to increased TAED demand in China, thereby raising prices across Asia. This was further accompanied by Hurricane Helene, a Category 4 storm, which caused significant disruptions to supply chains and logistics operations across the southeastern United States, which consequently increased the lead time for deliveries, further leading to higher priced TAED inventories entering the US market
Looking ahead, suppliers in Asia are expected to maintain TAED prices as the arbitrage opportunity between Asia and North America remains favorable. This is underscored by a 2% decrease in shipping rates from East China to the US East Coast, making TAED exports profitable for Chinese suppliers to the US market.