Logistics planning and budgeting are perhaps the most important aspects of planning a construction project. The costs incurred by you as a builder will ultimately affect the project cost and then the project pricing. One of the most important outflows in your budget is likely towards construction materials. Apart from concrete products, construction chemicals such as concrete curing compounds, polymer bonding agents, release agents, protective coating, floor hardeners, adhesives, epoxy coatings, sealants, paints, and HPC mixtures contribute to the bulk of the materials cost.
Let us take a look at the factors that may affect the cost of these construction chemicals.
• Raw Material Cost – This is one of the most important of market factors that affects the price of construction chemicals. Like most commodities, the supply of chemical elements used in the construction industry is affected by availability of raw material and this determines the cost as well
• Transportation – Transportation costs are often included in the price of construction chemicals, particularly when borne by the supplier. This means that the net cost of construction chemicals varies depending on the distance of your warehouse or the construction site from the production unit or the suppliers’ market. Construction in semi-urban and rural areas, thus, may become expensive due to higher transportation and procurement costs.
• Source – Like all construction materials, the ultimate price of construction chemicals can depend largely on your own needs. The greater the quantity of procurement, the lower the prices offered by the supplier. Large construction companies that place bulk orders for several projects or group buyers often stand to get the lowest prices. Another factor that could influence the pricing of your construction chemicals is the actual source or vendor. Some construction companies may choose to procure directly from the producer. This can also affect the cost implications.
• Import cost of raw materials – A number of raw materials used in the production of construction chemicals are imported by India. These include sodium lignosulphonate, vinnapas (copolymer powder of vinyl acetate and ethylene), and planocolor antico. Most of these are imported from South Africa, China, and European nations. Export tariffs, excise duties, and customs duties and ongoing freight rates impact the import cost of raw materials, ultimately affecting the cost of the construction chemicals themselves.
The COVID-19 pandemic has had a severe impact on construction activities across the country. This slowdown has also reflected on the construction chemic industry. Recent market research reports, however, suggest that the construction chemicals market in India is expected to expand at about 14% CAGR through 2031. This is on the back of largescale infrastructural projects and commercial and residential construction work expected to be undertaken as soon as the economy opens up. It is likely that the flow of supply and demand will soon be restored and pricing will reflect this expansion.