For the Quarter Ending September 2024
North America
The TAED market in North America experienced a significant price increase towards the end of the third quarter, primarily driven by a combination of heightened demand and supply constraints. Most notable price changes occurred in the final month of the quarter, aligning with an uptick in demand conditions alongside maintenance turnarounds at several production facilities. This situation was particularly influenced by the surfactant industry, where demand from the beauty sector played a pivotal role in supporting the upward price trend. The price inflation was largely attributed to limited inventories available for export from Asia, where maintenance activities at production sites led to decreased output. As a result, the flow of TAED into the U.S. market was restricted, further amplifying price increases.
Additionally, improved demand conditions across Asia contributed to this scarcity, creating a ripple effect that impacted U.S. pricing. Supporting this trend was a 0.2% increase in consumer spending in the U.S. during August, as reported by the American Chemistry Council. This growth, driven primarily by increased spending on services, suggested a potential rise in demand for TAED products, particularly in connection with consumer goods. Compounding these supply challenges were disruptions caused by Hurricane Helene, a Category 4 storm that significantly affected logistics and supply chains in the southeastern United States. The storm resulted in longer lead times for deliveries, exacerbating inventory shortages and pushing TAED prices even higher as suppliers struggled to meet market demand.
In summary, the interplay of limited supply from Asia, increased domestic demand, and logistical disruptions due to the hurricane collectively fuelled substantial price hikes in the North American TAED market during the quarter.
APAC
The Asian TAED market experienced a significant price surge of approximately 17% during the third quarter of 2024. This increase was primarily driven by reduced product availability and a partial uptick in demand from the downstream surfactant industry, especially during the festive Mid-Autumn season, which includes key events like Silver September and Golden October. Notably, this price rise occurred despite a decrease in feedstock prices, such as Ethylene and Acetic Anhydride. Most of the price changes were observed in the final month of the quarter, coinciding with an uptick in demand conditions and maintenance turnarounds at some production facilities. The surfactant industry's demand, particularly from the beauty sector, also contributed to this positive trend. Insights from China's beauty market revealed that moisturizers represented 62.9% of the skincare category, growing by 9.5%, and overall skincare sales increased by 4.2%. Online sales accounted for over 80% of total skincare sales, highlighting a robust demand from the downstream FMCG sector. Additionally, TAED price inflation in China was bolstered by improved demand from the US market, where consumer spending increased by 0.2% in August, as reported by the American Chemistry Council. This rise in spending, particularly on services, is expected to further boost TAED demand in China, influencing prices across Asia. The interconnected demand from both local and international markets is likely to shape future pricing trends for TAED, emphasizing the importance of monitoring these dynamics closely.
Europe
The European TAED market saw a substantial price increase during the third quarter, driven by several interrelated factors primarily rooted in the Asian supply chain. Production levels in key exporting regions, particularly in China, were notably low due to multiple facilities undergoing maintenance turnarounds. This situation restricted the availability of TAED for export to Europe, creating a supply crunch that contributed to rising prices. Compounding these supply issues were delays in shipments resulting from ongoing crises in the Red Sea, which affected shipping routes and led to longer lead times for deliveries. Such logistical challenges further exacerbated the strain on the supply chain, making it difficult for European markets to replenish inventories promptly In Europe, the market typically experiences a downturn in demand following the summer vacations, but this year the recovery has been particularly sluggish. Many suppliers opted to stockpile inventories in anticipation of increased demand during the festive quarter, which often sees heightened transactions in preparation for seasonal sales. This strategic buildup of stock not only aimed to mitigate potential shortages but also exerted upward pressure on prices as suppliers sought to capitalize on the anticipated surge in demand. Overall, the combination of constrained supply from Asia, logistical disruptions, and proactive inventory management in Europe created a robust upward trajectory for TAED prices during the quarter
