New Delhi [India], November 24 (ANI): The domestic chemical companies continue to face major risks due to the ongoing pressure from Chinese dumping and uncertainty around US tariffs, highlighted a recent report by Systematix Research.
The report stated that the current environment presents two key risks for the domestic industry, the first is the project execution delays, and continuing pressure from Chinese dumping and US tariff policies.
At the same time, the report added that a faster end to the agrochemical destocking cycle remains the major positive trigger for the sector.
It stated “The impact of Chinese overcapacity and dumping remains the most significant and persistent headwind”.
The report explained that Chinese dumping in the Indian chemical industry refers to China selling chemical products at artificially low prices.
This practice harms Indian manufacturers by creating unfair competition and pushing down market prices. In response, the Indian government has imposed anti-dumping duties (ADDs) on several Chinese chemical products to protect the domestic industry and ensure fair trade.
The impact of Chinese overcapacity and dumping remains the most significant and persistent challenge for Indian chemical manufacturers.
This pressure has directly affected margins in various segments, including phenolics (ATLP), advanced intermediates (DN), packaging films, and technical textiles (SRF).
According to the findings, the report mentioned that Chinese dumping has severely affected companies such as SRF Chemicals, Deepak Nitrite (DN), and Atul (ATLP). In addition, heavy destocking in the agrochemical segment has significantly impacted the Advanced Intermediate (AI) business of Deepak Nitrite, while new uncertainties around US tariffs have weighed on companies like ARTO Chemical’s and SRF.
The report observed that the sector is also facing challenges from customers delaying procurement decisions as they wait for clarity on pricing and trade policies.
Despite these challenges, the report pointed out that volumes across the coverage universe remained resilient during the second quarter and the first half of FY26.
This was achieved even amid a difficult global and domestic macroeconomic environment, rising geopolitical tensions, and sudden shifts in global trade policies.
However, aggressive pricing strategies and steep dumping from China have further increased pressure on margins across both commodity and certain speciality chemical segments.
So, while short-term challenges remain due to trade pressures and execution delays, the sector’s resilience in volumes and profitability offers some relief. (ANI)
Disclaimer: This story is auto-generated from a syndicated feed of ANI; only the image & headline may have been reworked by News Services Division of World News Network Inc Ltd and Palghar News and Pune News and World News
HINDI, MARATHI, GUJARATI, TAMIL, TELUGU, BENGALI, KANNADA, ORIYA, PUNJABI, URDU, MALAYALAM
For more details and packages
