Bentonite Boom: Construction & Energy Fuel March 2025 Surge
Bentonite Boom: Construction & Energy Fuel March 2025 Surge

Bentonite Boom: Construction & Energy Fuel March 2025 Surge

  • 27-Mar-2025 5:30 PM
  • Journalist: Patricia Jose Perez

Bentonite prices showed an upward trend in March 2025; China saw a significant increase, while India saw a slight increase. The main downstream industries that fueled demand and contributed to this increase were construction, manufacturing, and energy-related businesses.   The price volatility shows that, in spite of general economic uncertainty, the bentonite market is still strong.

Key takeaways:

  • Bentonite prices increased in China and India due to heightened demand from the construction and industrial sectors.
  • The expansion of China's oil and gas industry facilitated the utilization of bentonite in drilling and processing activities.
  • India's energy sector and infrastructure development facilitated steady bentonite use.
  • Although economic uncertainties in China's construction industry posed challenges, it did not impact overall demand.
  • Bentonite is crucial for construction, energy, and industrial industries, hence future growth in both nations is expected.

China’s Construction Sector and Bentonite Demand

Weak manufacturing performance and slow property sales hampered China’s building sector in early 2025, creating challenges.  While property sales were declining and the manufacturing activity dropped which caused a tightening.  Bentonite demand remained constant despite these challenges as industrial activity and infrastructure developments kept a consistent need for drilling and construction supplies.

Bentonite use was also influenced by China's oil and gas sector's persistent changes.  Bentonite has become a vital element in drilling and refining operations with more domestic exploration activities and natural gas infrastructure developments.  On the other hand, future demand can be affected by the economic uncertainties trade limits and reduced property investments generate.

India’s Construction Growth and Bentonite Use

In starting of 2025 India saw inconsistent success from India's building industry.  Although industrial production fell somewhat in December 2024, infrastructure projects under Bharatmala and Sagarmala programs drove a consistent demand for bentonite.  Digital building techniques and sustainable materials' growing use provide more chances for bentonite suppliers as well.

Given that India's construction equipment market is expected to expand rapidly, bentonite will profit from the growing demand in excavation, drilling, and tunneling applications.    The government's ongoing efforts to build infrastructure, including as roads, bridges, and cities, have highlighted bentonite's importance as a vital industrial resource.

Energy Sector Influence on Bentonite Market

In the energy industry, bentonite is still a crucial component, particularly for drilling fluid compositions. Increased investment in natural gas and oil production in China necessitated a steady supply of bentonite to improve drilling efficiency. Additionally, the demand for bentonite for lining and sealing applications was indirectly stimulated by the growth of gas storage facilities.

In 2024, the amount of crude oil produced domestically in China increased to approx 4 million barrels per day, increasing the need for bentonite in drilling applications. Natural gas production increased significantly at the same time, improving its application in extraction and refinement procedures. In order to ensure the security of the energy supply, infrastructure initiatives like pipeline networks and more gas storage have reinforced the need of bentonite in industrial applications.

The growing reliance on oil imports in India further increased the use of bentonite. Since the demand for petroleum products is expected to increase gradually in FY25, drilling and refining operations continue to play a significant role in the stability of the bentonite market.  India purchased almost 220 million tons of crude oil in the first 11 months of FY25, demonstrating the increasing demand for bentonite in the extraction and refinement of oil.   As the country sought to improve its energy security, there was a steady demand for bentonite for use in oil well drilling and refinery operations.

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