In 2014, China’s central bank declared that credit outflows to oversupplied industries would be curtailed, including certain chemical industry segments. In June 2018, the United States announced it would apply a 25% tariff on $50 billion worth of Chinese imports over two phases. China replied by placing a similar tariff levy on US products worth $50 billion.
Atul Ltd’s capex is focused on debottlenecking and backward integration. The general trend in the chemical industry is that capex towards newer products with high research & development capabilities yields better results than capex being used for operational efficiencies. How will it impact the performance of the chemical company?
In the previous two decades, the Chinese economy has grown to become a global behemoth in the chemical sector.
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