Demand to approach 40 billion yuan in 2012.
Silicone sealants were used in the construction of the Westin Diplomat Hotel in Florida. Photo courtesy of Dow Corning.
Table. U.S. Silicone Demand (million dollars)
Demand for construction chemical products used in on-site
applications in China
is forecast to approach 40 billion yuan in 2012, expanding 10.1% per annum from
2007. Growth will be driven by an increase in new construction, as well as more
improvement and repair projects. These advances will, in turn, be fueled by
continuing industrialization and urbanization in China.
These and other trends are presented in Construction Chemicals in China
a new study from The Freedonia Group Inc., a Cleveland-based industry research
A focus on improving the general quality of construction will also boost gains
by increasing the volume of chemicals used in construction applications, as
well as spurring demand for higher-priced, value-added types. Production cost
increases will contribute to growth in value terms, although competition within
the industry will prevent suppliers from fully passing these effects through to
end users. A slowdown in urban real estate markets in China will result in a deceleration
in construction expenditure gains and associated chemical product sales from levels
seen over the past decade.
Caulks and adhesives will remain the largest construction chemical product
category in 2012, accounting for about 40% of total industry sales. Demand will
be driven by continuing increases in the number of fenestration products and
plumbing fixtures per structure in China, as well as by the use of
high-performing adhesives in place of mechanical fasteners. Cement and asphalt
additives will be the second-largest product category in China in 2012,
with sales benefiting from increasing paved surface and high-rise building
construction. Protective coatings and sealers will be the fastest-growing major
product segment, with advances primarily deriving from improvements in the
quality of construction in China.
Demand for chemical products used in nonresidential building construction will
reach 8.7 billion yuan in 2012, the largest market for construction chemicals
Gains will be driven by sustained government investment in institutional
buildings and foreign investment in manufacturing facilities, as well as by the
use of high-end products in many of these applications. Residential building
consumption of construction chemicals will be spurred by continuing
urbanization in China,
and by rising income levels and living standards leading to higher consumer
expectations of housing quality. Non-building construction chemical demand will
benefit from sustained high levels of government investment in transportation
For more information, contact Corinne Gangloff, The Freedonia Group
Inc., 767 Beta Drive, Cleveland, OH 44143-2326; phone (440) 684-9600; fax (440)
firstname.lastname@example.org; or visit www.freedoniagroup.com.