BASF CoreShift: The Largest Optimization Program in Company History
On May 20, 2026, BASF formally launched CoreShift, what CEO Markus Kamieth described as “one of the largest optimization programmes for BASF, a new operating system for the company.” The program targets up to 20% net cash fixed cost savings in core businesses by 2029, measured against the 2024 baseline. The initiative is led by Julia Raquet, President of BASF’s Europe, Middle East, and Africa region, who now heads a newly established CoreShift Office reporting directly to the CEO.
CoreShift is not merely a cost exercise. It represents a structural reorientation of the world’s largest chemical company toward its most competitive segments, shedding non-core assets that have consumed capital without delivering proportional returns. The same day, BASF announced it had signed an agreement to sell its sodium silicates business, including assets at the Düsseldorf/Holthausen site, to U.S.-based PQ Corporation. PQ, headquartered in Malvern, Pennsylvania, is a global leader in silicates and will expand its European footprint through the acquisition. Financial terms were not disclosed; the transaction is expected to close in H2 2026.
The silicates divestiture follows two years of portfolio pruning that has already seen BASF exit agrochemicals, battery materials, coatings, and vitamin/functional food ingredients. Chief Executive Kamieth acknowledged that CoreShift will lead to “a new core business with fewer employees”, confirming further job cuts beyond the 4,800 positions already eliminated since 2024. For construction chemicals formulators who source from BASF’s Performance Solutions or Dispersions Technologies units, the implications are clear: the company is doubling down on high-margin specialty products while divesting commodity-scale businesses where pricing power has eroded.
CBAM Definitive Regime: Reordering Cellulose Ether Trade Flows
The EU Carbon Border Adjustment Mechanism (CBAM) crossed from transitional reporting into its definitive financial regime on January 1, 2026. After years of speculation and industry uncertainty, importers of carbon-intensive goods, including certain chemical products, now face mandatory carbon certificate purchases that effectively equalize the carbon cost between EU-produced and imported goods.
For cellulose ethers, the impact is already measurable. According to Expert Market Research’s June 16, 2026 price trend report:
- Europe (FOB Hamburg): Prices eased from Q4 2025 averages above USD 2,970/MT, but CBAM compliance costs on Chinese-origin imports create a persistent premium that prevents further downward correction. Germany’s HCOB Manufacturing PMI crossed into expansion territory at 51.7 in March 2026, the first reading above 50 in 3.5 years, driving genuine procurement demand recovery.
- China (FOB Qingdao): Prices partially recovered from Q4 2025’s sharp 6.84% quarterly decline to USD 4,207/MT, but domestic inventory overhang from the 2025 capacity expansion cycle and a manufacturing PMI stuck at 49.0 constrain producers’ pricing power. China’s industrial production grew 6.3% YoY in January-February 2026, but the PMI below 50 signals that manufacturing output is rising while order books remain thin.
- US (FOB Texas): Prices stepped back from the USD 3,877/MT peak in May 2026, as Brent crude retreated from the Q1 spike near USD 120/bbl into the USD 87-101/bbl range in June. However, US construction demand remains muted, consumer expectations sit at 70.9 (well below the 80 threshold for healthy residential activity), and unemployment at 4.4% limits recovery momentum.
The three-region divergence tells a structural story: European cellulose ether buyers face a permanent CBAM cost layer that will not disappear even if oil prices fall further. Chinese exporters benefit from lower feedstock costs and improved export economics, but cannot clear accumulated inventory without stronger domestic construction demand. North American buyers see marginal relief from oil-driven feedstock cost declines but lack the demand pull to negotiate further reductions.
CCUS at a Credibility Crossroads: Commercial Reality Meets Scaling Doubt
The Green Cement Technology Tracker, managed by the Leadership Group for Industry Transition (LeadIT), now maps more than 175 CCUS projects worldwide at various stages. Yet a sobering forecast accompanies the data: less than 2% of total global cement industry emissions are expected to be captured by 2035, with approximately 58 Mt/yr of CO₂ captured by 38 commercial-scale projects.
The critical signal for H2 2026 is that two flagship European projects have stalled without being cancelled:
- Holcim’s Obourg plant (Belgium): The project’s future is uncertain, with no clear timeline for resumption.
- Heidelberg Materials’ Slite plant (Sweden): Similarly stalled, awaiting policy and infrastructure clarity.
Meanwhile, Heidelberg Materials’ Brevik plant in Norway remains the world’s first operational commercial-scale CCS facility for cement, capturing approximately 0.4 Mt/yr of CO₂. Heidelberg’s Edmonton CCS project in Canada, originally anticipated for late 2026 commissioning, has been revised to a 2028 target date. Smaller demonstrations, including Ash Grove Cement’s Carbon Upcycling project at Mississauga (Canada) and Heidelberg’s Leilac demonstration at Ennigerloh (Germany), are expected to start by end of 2026.
The geographic balance is shifting. In 2025, CCUS project announcements outside Europe outnumbered those within it for the first time since 2019, with seven Asian projects announced. India has set aside over USD 2 billion in its 2026 budget for CCUS investment in hard-to-abate sectors including cement, and the Thai Cement Manufacturers Association announced a mobile CCUS pilot rotating between Saraburi plants starting July 2026.
For construction chemicals, the credibility gap in CCUS matters directly. If cement producers cannot scale carbon capture cost-effectively, low-carbon binder alternatives, including LC3 and geopolymer systems, become the faster decarbonization pathway, and admixture compatibility with these new binders becomes a pressing technical priority.
Geopolymer Cement Crosses USD 3.2 Billion: Low-Carbon Binders Gain Commercial Traction
The geopolymer cement market reached USD 3.21 billion in 2026, up from USD 2.9 billion in 2025, a 10.7% year-over-year expansion, according to The Business Research Company. The market is projected to reach USD 4.74 billion by 2030, growing at a 10.2% CAGR across the forecast period.
Geopolymer binders deliver 70-85% lower embodied carbon than Ordinary Portland Cement (OPC) while utilizing up to 100% industrial by-products such as fly ash, slag, and red mud. The commercialization momentum is anchored by several developments:
- NGE’s Géoliant project (France): A national-scale initiative to industrialize a French geopolymer sector, structuring the construction and mineral chemistry ecosystem around low-carbon solutions.
- Suvo Strategic Minerals + PERMAcast (Australia): A May 2024 partnership to develop and commercialize waste-derived geopolymer concrete products, accelerating the timeline by 2-3 years.
- Betolar + Fujairah Concrete Products (UAE): A December 2023 collaboration on cement-free paving solutions using Geoprime geopolymer technology.
- APAC dominance: Asia-Pacific remains the largest regional market, driven by infrastructure investment, abundant fly ash and slag supplies, and supportive policy frameworks.
For admixture manufacturers, geopolymer’s growth creates both opportunity and urgency. Alkali-activated binder systems require fundamentally different admixture chemistry than OPC-based formulations. PCE superplasticizers designed for OPC may not perform optimally in geopolymer systems; cellulose ethers must be validated for compatibility with high-alkali environments; and RDP formulations need to demonstrate adhesion and flexibility in low-cement or zero-cement matrices. The admixture companies that invest early in geopolymer-compatible product lines will capture a market growing at double the rate of conventional construction chemicals.
PCE Superplasticizers: A USD 7+ Billion Market Maturing Amid Innovation
The polycarboxylate ether (PCE) superplasticizer market has crossed USD 7.18 billion in 2026, with a projected trajectory to USD 12.69 billion by 2035 at a 6.5% CAGR, according to Business Research Insights. The market’s growth is driven by high-performance concrete demand in infrastructure, precast, and ready-mix segments worldwide.
Innovation in the PCE space is now converging around three priorities:
- Bio-based and low-carbon PCE: As the ScienceDirect review (December 2023) documented, PCE’s own CO₂ footprint is becoming a design variable. Manufacturers are exploring bio-derived acrylic acid feedstocks and lower-energy polymerization processes to reduce the admixture’s embodied carbon while maintaining slump retention and water reduction performance.
- LC3 and SCM compatibility: PCE products designed for 50%+ supplementary cementitious material (SCM) replacement in LC3 blends must manage different surface charge and adsorption kinetics than OPC-only systems. The demand for LC3-compatible superplasticizers is accelerating as India, China, and Latin America adopt calcined clay standards.
- 3DCP rheology control: Three-dimensional concrete printing requires PCE products that provide precise rheology modification under static conditions, rapid setting acceleration after deposition, and inter-layer bond strength optimization. Recent reviews in Taylor & Francis (May 2026) and Springer (June 2026) confirm that 3DCP admixture systems cost 1.5-2.0x conventional dry-mix mortar formulations, creating a premium niche for specialized PCE products.
VAE Redispersible Powder: Steady Growth with a Sustainability Pivot
The global VAE redispersible powder market was valued at USD 1,231 million in 2024 and is projected to reach USD 1,532 million by 2031 at a 3.2% CAGR, according to Chemical Research Insight’s May 2026 report. Wacker Chemie maintains its dominant position with a market share well above 40% through the VINNAPAS® product line, while Celanese’s Elotex® brand and Dow’s RXOL™/ACULYN™ series hold significant positions.
The competitive landscape is being reshaped by five Chinese producers, including Shandong Xindadi, Wanwei Group, and Sailun Building Materials, who are expanding capacity and intensifying global price competition. Key innovation trends include:
- Hydrophobic and waterproof VAE powder variants for exterior and wet-area applications
- Low-VOC formulations driven by tightening EU and US emissions regulations
- LC3-compatible RDP that maintains adhesion and flexibility in calcined clay binder systems
- Nano-reinforced and self-healing RDP for high-durability mortar applications
For formulators, the VAE redispersible powder market offers a widening choice between premium European products with proven sustainability credentials and cost-competitive Chinese alternatives with growing export capabilities. The decision calculus increasingly includes CBAM compliance cost for EU-bound products, LC3 compatibility testing, and VOC specification compliance.
Waterproofing Admixtures: Crystalline Dominance at USD 7.6 Billion
The waterproofing chemical admixture market reached USD 7.6 billion in 2026 and is projected to grow to USD 15.6 billion by 2035 at an 8.3% CAGR, according to Dimension Market Research. Crystalline waterproofing admixtures accounted for 61% of global admixture volume in 2024, widely used in high-rise foundations, tunnels, and basements.
North America holds a 38.4% global share, while Europe grows at 7.9% CAGR and APAC is the fastest-expanding region. The market is highly fragmented, with the top 10 companies holding just 23% of global share, Sika leading at approximately 3%. Key players include Kryton, Xypex, Fosroc, GCP Applied Technologies, BASF/MBS, Penetron, Schomburg, Mapei, and Hycrete.
The Emerald Magazine of Concrete Research’s Chen et al. state-of-the-art review (June 19, 2026) from Tongji University confirms that crystalline capillary crystalline waterproofing (CCCW) at 2% dosage heals cracks up to 0.3-0.5mm, extending to 0.8mm over wet-dry cycles, and demonstrates compatibility with reinforced concrete structures. This finding positions CCCW as an industrial-scale self-healing solution that bridges the gap between laboratory bacterial healing and field-deployable waterproofing.
Implications for Buyers, Formulators, and Specifiers
The convergence of BASF CoreShift restructuring, CBAM definitive compliance costs, CCUS credibility challenges, geopolymer commercialization, and PCE/VAE innovation creates five actionable priorities:
- Diversify cellulose ether sourcing: The three-region price divergence is structural, not cyclical. European buyers paying CBAM premiums should evaluate non-Chinese sourcing or regional production; Chinese exporters should target APAC and Middle East markets where CBAM does not apply.
- Invest in geopolymer and LC3 admixture compatibility testing: With geopolymer cement growing at 10.7% and LC3 adoption accelerating in Asia, admixture manufacturers who delay validation will lose specification access.
- Monitor BASF portfolio shifts: CoreShift may divest additional commodity-scale construction chemical businesses. Buyers with BASF-only supply chains should build dual-source capability.
- Track CCUS project delivery, not announcements: The credibility gap between government encouragement and market acceptance means that low-carbon binder alternatives may reach commercial scale faster than carbon capture at cement plants.
- Specify crystalline waterproofing with documented CCCW performance: The Tongji University review provides an evidence base for 0.3-0.5mm crack healing at 2% dosage, a specification-ready benchmark for high-durability concrete projects.
At Hosechem, we monitor these structural shifts continuously, ensuring our cellulose ether, RDP, PCE, and waterproofing admixture product lines remain aligned with the evolving technical and regulatory landscape. Whether you are navigating CBAM compliance, specifying LC3-compatible admixtures, or sourcing crystalline waterproofing for tunnel and foundation projects, our technical team provides the data-driven guidance you need. Contact us at info@hosechem.com or visit hosechem.com to discuss your H2 2026 procurement and specification strategy.