Adhesives and sealants: Feedstocks
Why vinyl acetate is the swing cost in your glue
What this tab covers What it is made from and what it feeds: the raw materials and energy per tonne with their share of cost (linked to the commodity table), who is low-cost and why, and the chemicals made from it.Adhesives are mostly made from oil- and gas-based monomers: VAM (from ethylene and acetic acid), acrylate esters (from propylene), EVA and polyolefins, isocyanates and polyols, epoxy resin and silicones. Natural inputs include starch, dextrin, rosin and natural rubber. Formulators rarely make their own monomers, so cost follows the petrochemical cycle with a lag; integration into VAM is the main way Indian players try to protect margins.
Inputs per tonne
| Input | Quantity per tonne | Role | Share of cost | Source |
|---|---|---|---|---|
| Oil Crude oil | about 400-500 kg per t of PVAc white glue (indicative) | main binder in water-borne wood and paper adhesives | the largest single input for Indian consumer adhesives (indicative) | indicative; FundsIndia (VAM +70% in 2026) |
| Oil Crude oil | about 400-600 kg per t of acrylic PSA (indicative) | PSA and construction adhesive binder | about 40-60% of raw materials for PSAs (indicative) | acrylic_acid tile (about half of acrylic acid goes to esters) |
| Gas Natural gas | varies by system | reactive structural adhesives and sealants | high in reactive systems (indicative) | indicative |
| Si Silicon | about 300-500 kg per t of silicone sealant, with fillers (indicative) | glazing and weather sealants | main cost of silicone sealants | indicative |
| Tm Timber | about 300-400 kg per t of hot melt (indicative) | tack | about 30% of hot-melt raw materials (indicative) | indicative |
| Mz Maize | most of the solids in corrugating adhesives (indicative) | paper and board bonding | main cost of corrugating glue | indicative |
Who is low-cost, and why
There is no producer cost curve in the commodity sense. Profit depends on brand strength and pass-through: Pidilite's EBITDA margin rose to 24.6% (standalone FY26) as input costs were stable, while VAM spikes squeeze margins for one or two quarters. Integrated monomer makers (Celanese, LyondellBasell, Chinese VAM producers) earn the commodity margin; formulators earn the brand margin.
Raw materials on the commodity table
Oil Crude oilWhat it is made into
| Product | Note |
|---|---|
| AAc Acrylic acid | upstream: acrylate esters for PSAs |
| AcOH Acetic acid | upstream: feedstock for VAM |
| PU Polyurethanes (MDI, TDI, polyols) | upstream: PU adhesives and sealants |
| EPX Epoxy resins | upstream: structural adhesives |
| Sil Silicones | upstream: sealants |
| Str Starch and cellulose derivatives | upstream: corrugating and paper adhesives |