Cautious outlook for specialty chemical manufacturers

Multiple specialty chemical manufacturers are staring at weak prospects in the near term, led by weak global demand and destocking of inventory.

- Ujval Jauhari

Declining chemical prices and increased competition from China post opening of the Chinese economy are putting pressure on their margins. The only solace for now comes from some decline in raw material prices. Nevertheless, there are multiple factors that led to a cautious near-term outlook for many companies even as analysts maintain a structurally positive view on the sector looking at long-term prospects.