New Delhi, Jan. 15 -- The chemical sector in the country is facing multiple structural and macroeconomic risks, with challenges ranging from China's persistent overcapacities to elevated crude oil prices and weak demand in key western markets, according to a report by Nuvama.

The report highlighted that one of the biggest structural risks for Indian chemical manufacturers comes from China's dominance in global commodity chemical capacities. China holds significant global capacity across products such as soda ash, caustic soda, phenol, PVC, polycarbonates, epoxy resins, TDI, phthalic anhydride and acetic acid.

Despite demand conditions, utilisation levels in China remain well below optimal levels, keeping global prices depressed.

Nuvama...