Economics
Chemical Makers in India May Gain From China Virus Lockdown
A people walk down a road in front of a chemical factory as it discharges exhaust into the air of Mumbai, India
Photographer: Dhiraj SinghThis article is for subscribers only.
The worsening coronavirus crisis has emerged as a threat to global economic growth. But if it leads to disruption in production of chemicals in China’s Hubei province, the epicenter of the outbreak, then it may benefit Indian manufacturers, according to JM Financial.
Hubei has a large chemical industry, and the closure in 2016 of Hubei Chuyuan -- one of China’s top producers of dyes -- led to a jump in prices and saw shares of Indian producers rally multifold, the brokerage said in a report Monday.