In 2023, against the backdrop of global slowdown in growth, China, as the world's largest producer and consumer market of chemicals, manifested a slight decline in industry revenue, profits, and import and export volume, with a clear trend of increased quantity and decreased price[1] . In the first five months of 2024, the cost pressure on the chemical industry has decreased, but the demand side is still at a low level. Meanwhile, a comprehensive recovery still needs period of time. However, the rapid development of the new energy vehicle industry will still provide certain support for the demand of the chemical industry. On the supply side, most basic chemical products are still in the stage of capacity consumption or expansion, and the industry's supply and demand will still be in a relaxed situation.

As an upstream player in the paint industry, the prices of chemical products affect the prices of products in the paint industry. According to the Ibuychem Research Institute paint procurement cost index, the paint procurement cost index in May 2024 is 90%, which remain unchanged on a month on month basis and increase by 3 percentage points compared to the same period last year. From the perspective of upstream raw material prices of coatings, the prices of epoxy resin, ethyl acetate, acrylic acid, neopentyl glycol, TDI and other products are lower than the same period last year.

According to the Ibuychem Research Institute powder coating procurement cost index, the purchasing cost index of powder coatings in May 2024 was 110%, an increase of 12 percentage points month on month and 20 percentage points year-on-year. The  price of TMA, a kind of powder coatings in upstream raw material[1]  has skyrocketed, and supply shortages have driven the price of TMA in China to over[2]  40000 yuan/ton, with even signs of continued upward trend. Affected by the significant increase in TMA prices, the powder coating procurement cost index has risen significantly.

The upstream raw materials of waterproof material industry chain include asphalt, SBS modifier, polyester base, polyether, membrane (including isolation membrane), lotion, base oil, paraffin, etc. From the perspective of the cost proportion of waterproof materials, the cost proportion of direct materials is as high as 90%, and changes in raw material prices directly affect the cost of waterproof materials. According to the Ibuychem Research Institute waterproof material procurement cost index, the purchasing cost index of waterproof materials in May 2024 was 103%, a decrease of 1 percentage point month on month and a year-on-year increase of 5 percentage points.

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