Construction Chemicals in China

Additional Information

Polymer flooring to be fastest growing product
Coatings and sealers will remain the largest construction chemical product category in 2012, accounting for 46 percent of total industry sales. Demand will be driven by their established use in all major construction markets, as well as by a shift toward higher priced, waterbased products. Polymer flooring will be the fastest growing construction chemical segment through 2012, reflecting the low base from which these gains are derived, as well as these products’ penetration in high-end car park applications. Caulks and adhesives, and cement and asphalt additives will be the second and third largest product segments, respectively, in 2012. Demand for these products will be primarily boosted by improving standards in building construction markets. All other construction chemical products used in on-site applications will benefit from overall improvements in construction quality in China.

Markets to slow as government applies brakes
Demand for chemical products used in nonresidential building construction in China will reach 51.5 billion Chinese yuan in 2012, driven by sustained foreign investment in the Chinese industrial sector, as well as by the prevalence of high-end products in these applications. Residential building related consumption of construction chemicals will be spurred by continuing urbanization, as well as by rising income levels and the ongoing privatization of home ownership. However, building construction spending in both segments will decelerate following government measures to prevent economic overheating. Nonbuilding construction chemical demand will benefit from high levels of government investment in utilities, power generation and other non-transport related infrastructure, although demand will be restrained to some extent by the low intensity of chemical use in road construction.