The hottest signal in the post-holiday building materials industry is here!
Leading companies such as Oriental Yuhong, BNBM Waterproofing, Keshun Co., Ltd., and 3TREES issued a second round of price increase letters intensively from the end of April to the beginning of May. Some products increased by as much as 25%. The price adjustment window was concentrated between April 30 and May 1. It can be called the most unified round of collective price increases during the year.
This is not a short-term follow-up, but a helpless self-rescue due to the “out-of-control” surge in raw materials: core raw materials such as asphalt, acrylic emulsion, epoxy resin, MDI, PP/PE, etc., have increased by 30%-55% in just two months, and cost pressure has completely penetrated the bottom line of corporate profits.
A cost-driven and leader-led price increase is reshaping the landscape of the entire waterproofing and coatings industry.
1. Official announcement of leading collectives: Up to 25% increase, payment terms tightened simultaneously
Since mid-April, leading companies in the waterproofing and coatings industries have been highly consistent and issued price adjustment notices, covering all categories of products such as engineering waterproofing, interior and exterior wall coatings, tile adhesives, and flooring.
- Oriental Yuhong: A letter was sent on April 16, stating that the price of engineering waterproofing products will increase by 3% to 8% starting from April 30. This is the third round of price adjustment this year.
- Beixin Waterproofing: Simultaneous official announcement of price adjustment, with mainstream price increases ranging from 3% to 8%, and strict control over credit sales and overdue accounts.
- Keshun Co., Ltd.: The price of waterproof products increased by 3% to 10%, and JS waterproof coatings increased by 10% alone to cope with cost pressure.
- Sankeshu: In a letter sent on April 17, prices for interior and exterior wall coatings, waterproofing and other products will increase by 3% to 25% starting from May 1, clarifying that it “reserves the right to make immediate price adjustments and does not rule out subsequent increases.”
This price increase has an obvious feature: it not only increases the price, but also tightens the payment terms.
Many companies have made it clear that “cash and spot goods will be shipped first, and customers with good credit will be given priority to ensure supply”, forcing dealers to speed up payment collection and select high-quality partners.
2. The “uncontrolled” surge in raw materials: up to 55%, cost pressure breaks through the bottom line
The core reason for the collective price increase of enterprises is the epic surge in the price of upstream raw materials, and the increase continues to expand, completely beyond the digestion capacity of enterprises.
- Asphalt: 4,400 yuan/ton, an increase of 53% (core raw material for waterproofing membranes, accounting for 33% of the cost);
- Acrylic emulsion: 7,500 yuan/ton, an increase of 47% (core raw materials for coatings and waterproof coatings);
- Epoxy resin: 19,000 yuan/ton, an increase of 30%
; - MDI: 26,200 yuan/ton, an increase of 28% (polyurethane raw material);
- PP/PE: 9,500 yuan/ton, an increase of 44%;
- Polyether: an increase of 56%, a new high in recent years.
The cost of raw materials in the waterproofing industry accounts for 70%-80% of the production cost. The surge in raw materials has directly caused corporate profits to be severely squeezed.
Oriental Yuhong’s 2025 annual report shows that the company’s net profit attributable to the parent company is only 113 million yuan, a year-on-year plunge of more than 90%, and the net profit rate is as low as 0.4%, which is at a 10-year low.
Even if the price increases this time by 3% to 25%, it is far from enough to cover the 30% to 55% increase in raw materials. The company is still struggling on the “edge of loss”.
3. The root cause of the surge: the superposition of three factors, making it difficult to cool down in the short term
The “out of control” of raw material prices is not an accident, but the result of the superposition of three factors: geopolitical conflict + supply and demand imbalance + cost transmission, which is difficult to alleviate in the short term.
1. The geopolitical conflict in the Middle East detonated oil prices: Since the end of February, the situation in the Middle East has been tense, shipping risks in the Strait of Hormuz have soared, and international crude oil prices have exceeded US$100 per barrel, hitting a three-year high.
Asphalt, acrylic acid, MDI, etc. are all downstream products of the petrochemical industry. The surge in oil prices directly drives up price increases throughout the chain.
2. The supply side continues to shrink, and inventories are low: Domestic refineries are undergoing spring maintenance (March-May), and weekly asphalt production plummets 24% year-on-year, hitting a four-year low; some overseas devices are undergoing maintenance (such as BASF’s Korean TDI device), and the supply of imported raw materials has dropped sharply; the vacuum of new production capacity has been superimposed, and the market supply and demand are seriously imbalanced.
3. Peak demand season + cancellation of export tax rebates, exacerbating tension: After the holidays, the waterproofing and coatings industries have entered the peak season for resumption of work, and demand has been released intensively; since April 1, export tax rebates for polyether and other products have been cancelled, domestic trade supply has further tightened, and prices continue to rise.
4. Major reshuffle in the industry: small and medium-sized enterprises are under pressure, and the leader is Hengqiang
This round of price increases is like a “big test” in the industry, accelerating the survival of the fittest, and the industry structure continues to solidify.
Small and medium-sized enterprises: Dilemma, accelerating clearing: Small and medium-sized enterprises lack scale advantages, brand premiums and capital reserves. They can neither lock in part of the raw material costs through long-term negotiated prices like leading companies, nor can they transmit all cost pressures downstream.
“Lossing money if prices don’t rise, losing orders if prices rise” has become a common predicament. Since March, hundreds of small waterproofing companies have suspended production and closed down in East and South China alone.
Leading companies: Take advantage of the situation to raise prices and seize share: Leading companies such as Oriental Yuhong, Beixin, Keshun, and 3Tree Trees, relying on large-scale procurement, brand influence, and financial strength, can not only transmit cost pressure more smoothly, but also take the opportunity to clean up small and medium-sized competitors and further seize market share.
At the same time, leading companies are pushing the industry to shift from vicious competition of “grabbing orders at low prices” to healthy development of “quality + value” to restore the bottom line of the industry’s profitability.
5. Prediction of the market outlook: Price increases may continue, and terminal costs are under pressure
In the short term, the trend of rising raw material prices is difficult to reverse, and the waterproofing and coating industries may usher in “multiple rounds of price increases.”
Companies such as 3TREES have made it clear that they “reserve the right to make subsequent price adjustments.” If raw material prices continue to run at high levels, another round of price increases may occur in June.
For downstream real estate, construction and decoration companies, construction and installation costs will rise significantly.
Calculated based on the 5% to 10% increase in waterproofing products, plus the increase in compliance costs brought about by the new national standard “General Specifications for Waterproofing in Buildings and Municipal Engineering Projects”, the cost of waterproofing projects for a single construction project will increase by 8% to 15%.
For ordinary consumers, the prices of waterproofing and paint for home decoration will also increase simultaneously, further increasing the cost of decoration.
6. Interactive Topics
How long do you think this round of price increases will last?
How should downstream small and medium-sized enterprises cope with cost pressure?
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