China Glut, High Crude, Weak Global Demand Squeeze India's Chemical Sector: Nuvama

• India's chemical industry faces a structural and macroeconomic squeeze due to Chinese overcapacity, high crude oil prices, and weak global demand.
• China's dominance in global commodity chemical capacities, with state-backed producers operating even at losses, distorts supply-demand and pressures prices.
• Weakening demand in Western markets (Europe and US) across housing, consumer goods, agrochemicals, pharmaceuticals, automotive, and construction sectors impacts Indian exports.
• The slowdown in construction affects demand for PVC, caustic soda, and polycarbonates, while agrochemicals and pharmaceuticals impact intermediates and solvents.
• Domestic challenges include delays in environmental clearances, weak anti-dumping enforcement, and high logistics/energy costs, hindering India's competitiveness.

Why It Matters: India's chemical sector is under severe pressure from Chinese oversupply, high crude, and weak global demand.