Blog

As August 2026 draws to a close, the construction chemicals sector is being squeezed from two directions at once. Upstream building-material costs are rising again across China and global petrochemical markets, while downstream demand remains stuck in the traditional summer lull. At the same time, low-carbon binder technologies—especially limestone calcined clay cement (LC3)—are moving from research papers into procurement rules, creating a new performance bar for admixture and dry-mix mortar suppliers. Here is a late-August snapshot of the forces shaping the industry.

A Cost-Driven August: Cement, MDI/TDI and Carbon Black Push Higher

On August 1, Chinese building-material markets opened with a wave of price increases that rippled through the mortar, concrete and coatings supply chain.

• Cement: Producers in Hunan, Shaanxi and Guizhou raised prices by RMB 30–60 per tonne. Hunan bagged cement climbed RMB 30–40/t, while bulk cement rose RMB 40–60/t. The increases were driven by August kiln curtailments—Hunan alone idled kilns for 18 days—and higher coal costs, not by stronger end-use demand.
• MDI/TDI: BASF Shanghai lifted its August TDI list price to RMB 19,000/t, up RMB 1,000/t. Huntsman raised polymeric MDI to RMB 19,500/t, up RMB 1,500/t. By July 31, the domestic polymeric MDI benchmark had risen 10.29% month-on-month. Overseas, Wanhua Chemical added $200/t for MDI/TDI in Southeast Asia, while Huntsman increased prices by $300/t for India and the subcontinent and €250/t for Europe, Africa and the Middle East.
• Carbon black: Cabot raised prices for Chinese rubber-grade carbon black by $100/t (approximately RMB 650–700/t), citing higher feedstock oil costs.

For dry-mix mortar producers, the arithmetic is sobering. Cement accounts for roughly 30% of raw material cost in ordinary dry mortar. A RMB 50/t cement hike translates into a RMB 15–20/m³ cost increase, a meaningful margin hit for smaller plants. MDI/TDI inflation, meanwhile, feeds into polyurethane sealants, waterproof mortars, tile adhesives and floor coatings, while carbon black affects rubber seals and some waterproofing membranes.

PCE Superplasticizer Monomers Stuck Between Firm Feedstock and Weak Demand

The polycarboxylate superplasticizer (PCE) monomer market remains trapped in a “high cost, weak demand” pattern. Ethylene oxide (EO)—the key feedstock—has stayed firm because of tight spot supply and strong ethylene glycol co-product economics, but monomer demand has softened as summer heat, typhoons and rain slow construction progress.

• As of August 13, mainstream EPEG prices were RMB 8,400–8,600/t in East China, RMB 8,500–8,600/t in South China, and RMB 8,350–8,550/t in Northeast China.
• Domestic PCE monomer capacity utilization stood at 26.26%, down 1.43 percentage points week-on-week, with weekly output at 29,300 mt (-5.18%).
• Sellable inventory at PCE monomer plants remained deeply negative at –20.57%, although that figure rose 3.31 points from the previous week as some low-priced cargo appeared.
• EO industry operating load was around 51%, with imported-ethylene-based EO profit at RMB 692.05/t, up RMB 205.71/t week-on-week.

The outlook is range-bound. If EO stays elevated, monomer producers have limited room to cut prices without slipping into negative margins. Buyers, however, are largely consuming existing stocks and waiting for clearer direction, keeping new orders sporadic.

Global Market Sizing: USD 57–98 Billion Range Reflects Definition Differences

Market-sizing estimates for construction chemicals continue to diverge widely depending on product scope, but all point to steady expansion led by Asia-Pacific.

• Industry analyst Vishal Gandhi sized the global market at roughly USD 57 billion in 2026, heading toward USD 80 billion by 2033 at about 5% CAGR.
• ReAnIn put the market at USD 56.22 billion in 2025, forecasting USD 86.79 billion by 2032 at 6.4% CAGR.
• Fortune Business Insights used a broader definition, estimating USD 98.19 billion in 2026 and USD 167.44 billion by 2034.

Regional growth is highly uneven. MarkWide Research values Asia-Pacific at USD 18.6 billion in 2026 and expects it to reach USD 39.41 billion by 2035 at 8.70% CAGR; Morgan Reed Insights uses a wider scope and forecasts APAC at USD 28.4 billion in 2026 growing to USD 54.91 billion by 2035. India remains the standout: Precedence Research estimates the market at USD 4.64 billion in 2026, while Gandhi sized it at roughly USD 2.5 billion in 2026 with potential to reach USD 4.5 billion by 2031 at around 12% CAGR.

Sika Expands Adhesives and Sealants Footprint with Akkim Acquisition

Sika is continuing its bolt-on acquisition strategy. In February 2026 the Swiss specialty chemicals group agreed to acquire Akkim, a Turkey-based manufacturer of adhesives and sealants with net sales of approximately CHF 220 million in 2025. Akkim operates large production sites in Turkey and Romania and is adding a third major Turkish plant. Its distribution network is concentrated in Eastern Europe, Central Asia, the Middle East and North Africa—markets where Sika is eager to build scale in the distribution channel.

The deal is expected to close in the third quarter of 2026 and aligns with Sika’s Strategy 2028 focus on adhesives, sealants and distribution reach. The acquisition follows Sika’s purchase of Swedish mortar producer Finja in early 2026 and continues a broader industry consolidation trend that includes Saint-Gobain’s pending acquisition of crystalline waterproofing specialist Xypex and its recent Asia-Pacific deals in Vietnam and Japan.

LC3 and Calcined Clay Cement Move From Pilot to Procurement Rules

Low-carbon concrete is no longer a boutique specification. In 2026 it is becoming a standard procurement question, and LC3 is one of the most scalable near-term tools.

• LC3 can replace 30–50% of clinker with a blend of calcined clay and limestone, cutting cement-related CO2 by 30–40%.
• The American Council for an Energy-Efficient Economy estimates LC3 may cost up to 25% less to produce because it uses less energy and lower-cost raw materials.
• Unlike fly ash and slag, calcined clay relies on abundant geological reserves rather than coal or steel output, giving it better long-term supply security.

Procurement is now pulling adoption. The U.S. General Services Administration’s Inflation Reduction Act low-embodied-carbon material requirements set global warming potential limits for concrete by strength class and require product-specific Type III Environmental Product Declarations. Contractors bidding on federal work must document carbon data or risk losing the job. More than 40 organizations have made commitments through ConcreteZero, the First Movers Coalition and similar initiatives. For admixture suppliers, LC3 creates a technical opportunity: these blends often require 1.5–3.6 times more superplasticizer than ordinary Portland cement to achieve equivalent workability.

Feedstock Snapshot

• HPMC: Shandong premium grade RMB 12,000/t; Hubei 100,000 cps grade RMB 15,000/t as of August 24.
• Ethylene oxide: East China benchmark around RMB 7,600/t, supported by low operating loads and tight spot supply.
• PCE monomers: EPEG East China RMB 8,400–8,600/t; HPEG/TPEG generally quoted RMB 8,600–8,800/t in late August.
• Cement: Regional increases of RMB 30–60/t in central and western China as of August 1.

What This Means for Dry-Mix and Admixture Buyers

Three practical takeaways stand out for procurement and formulation teams as the industry heads into the September peak season.

1. Expect continued cost volatility. Cement, petrochemical intermediates and carbon black are all moving higher, and the pass-through to mortars, adhesives and sealants is already underway.
2. Build flexibility into PCE buying. Monomer prices are caught between firm EO and weak demand. Short-term restocking should be need-based, with close attention to EO inventory and utilisation data.
3. Position for low-carbon specifications. LC3, PLC and SCM blends are becoming procurement requirements rather than green options. Formulators who can supply compatible admixtures, cellulose ethers and RDP systems will have an edge in public-sector and EPD-driven tenders.

Need reliable cellulose ethers, RDP, PCE or waterproofing additives for your next formulation? Hosechem supplies construction-grade HPMC, HEMC, HEC, redispersible polymer powder, polycarboxylate superplasticizers and complementary additives for dry-mix mortars, tile adhesives, renders and waterproofing systems. Contact our team today for technical data sheets, samples and formulation support.