iBuychem Research Institute

In the first half of 2026, China’s coatings raw materials market started strong before weakening, with pronounced structural divergence. From January to April, geopolitical tensions drove up crude oil and sulfur prices, pushing up the costs of titanium dioxide, acrylates and solvents. Raw material suppliers consequently issued a wave of price increase notices. However, weak domestic demand from the downstream architectural coatings sector limited the pass-through of higher costs.

From May to June, the upward momentum in raw material prices eased, with some products retreating from their earlier highs. Domestic demand for architectural coatings remained weak, while industrial coatings and export orders provided some support. Structural divergence across the market became increasingly evident, and coatings manufacturers continued to face difficulties in passing on higher costs, leaving industry margins squeezed by pressures from both upstream costs and downstream demand.

According to data from the iBuychem Research Institute, the paint procurement cost index in June 2026 was 86%, down 7 percentage points month-on-month but up 10 percentage points year-on-year. Overall, prices for midstream and downstream products such as paint resins, curing agents, solvents, additives, and waterproof materials generally declined month-on-month, with most categories dropping by 5%-20%, while some high-end specialty raw materials fell by over 30%.

The prices of raw materials in the powder coatings and waterproofing materials sectors also showed a significant decline. In June 2026, the powder coatings procurement cost index stood at 87%, down 19 percentage points month-on-month but up 2 percentage points year-on-year. The polyester resin materials used in powder coatings experienced a collective plunge, with TMA, the largest decline, dropping by 41.41%; TMP followed closely. Isobutylaldehyde and neopentyl glycol also fell by over 13%. In June 2026, the waterproofing materials procurement cost index was 111%, down 7 percentage points month-on-month but up 14 percentage points year-on-year. In June, only modified asphalt prices saw a slight increase, while cement prices edged lower month-on-month. Other waterproofing raw materials, including ABS polymer, HDPE, EPDM rubber, and PVC, all declined month-on-month, with ABS polymer and HDPE dropping by more than 10%.