Raw material instability injecting uncertainties in the global construction chemicals
- 29-Apr-2022 4:41 PM
- Journalist: Bob Duffler
Global construction chemicals have been under the threat of rising raw material costs globally, owing to different market hiccups and several uncertainties. ChemAnalyst data shows a consistent rise in construction-related raw material costs across the global market like Sodium Lignosulphonate, ground granulated blast furnace slag, Triethanolamine, etc. As per the data, a hike of around 0.6% has been observed for Sodium Lignosulphonate in the US market during the past two weeks, while India witnessed a marginal decline of around 0.5% in the meantime.
Other construction chemicals like GGBFS (Ground Granulated blast Furnace Slag) and Triethanolamine have also risen effectively during April 2022 across the global market, showing an increment of 2% to 4% in Germany, USA, and China during April for GGBFS, and 1.5% to 2.3% increments in Triethanolamine prices across India, Saudi Arabia, USA, and China in the meantime.
The global construction sector has been on an uptrend since the start of the Russia-Ukraine war, owing to a steep rise in the upstream value coupled with rising energy prices. Some global construction chemical suppliers like GCP Applied Technologies Inc. have raised their product prices for the global market with immediate effect due to consistent rise in natural gas prices and soaring freight costs. Furthermore, global procurers have been opting for the wait-and-see approach, as a steep and consistent rise in raw material cost has been deteriorating their profitability. As per the market sources, builders were heard waiting for a fall in crude oil value, while also expecting a resolve to Russia-Ukraine conflict, which is still a major issue for global players.
However, in India and China, some of these chemicals have started showing a fall in demand due to different reasons. China has been in lockdown restrictions since the start of this month, while Indian manufacturers are not procuring enough cargoes due to ample availability. Under the influence of ample material availability due to market disturbance in China, smooth trade flow was observed for the Indian market, showing a marginal decline during the second half of April 2022.