Tashilhunpo, Monastery in Shigatse, China

New Delhi, Oct 16 China's energy crisis is expected to give cost and production advantage to India's chemicals and steel companies in domestic as well as international markets.Notably, China's worsening energy situation has impacted its industrial segments and forced factories to cut production.It is also threatening to impact the growth of the country's vast economy and place increased strain on global supply chains.Globally, the increased coal prices, high logistics costs and logistical challenges have led to a rise in raw materials costs across sectors."However, the order books of Indian manufacturers would witness growth on account of lower supply by Chinese counterparts," said India Ratings and Research (Ind-Ra)."Moreover, the increase in raw material prices has led to a rise in the prices of the exported goods, and the resultant adverse impact on the terms of trade (export price to the input price) is one of the reasons for dollar strengthening against the rupee."As per the report, the weakened rupee coupled with China's production crunch will give a boost to Indian exports."However, the increased coal prices have pushed up manufacturing costs globally, and the agency believes producers across sectors will pass the increased costs to the end-user industries, thereby leading to inflationary pressures, which could eventually trickle into the Indian economy as well."According to the report, China's energy crisis and resultant likelihood of shutting down of Chinese companies or intermittent curbs on manufacturing would prove advantageous to Indian companies, as the demand for their products is bound to rise in both domestic and international markets."Furthermore, the agency opines that the domestic end-user industries for chemicals, such as dyes and pigments, pharmaceuticals, agrochemicals and others, will pass on the overall increase in costs to consumers, thereby maintaining their profitability."On the steel sector, the agency said the fall in China's steel output and India's imports of intermediate steel products would benefit Indian steel players by way of lower import risks and greater export opportunities.Disclaimer: This post has been auto-published from an agency feed without any modifications to the text and has not been reviewed by an editor

TashilhunpoFOLLOW

Tashilhunpo, Latest News

Chinese State Councilor and Foreign Minister Wang Yi on Sunday held a phone conversation with Saudi Arabian Foreign Minister Prince Faisal bin Farhan Al Saud over bilateral ties and cooperation. ...

Lucknow, Oct 17 UP Chief Minister Yogi Adityanath on Sunday lashed out at the opposition for neglecting overall ... ...

Aggrieved Chinese office workers have recently initiated a 'worker lives matter' campaign over gruelling work hours in the country. ...

Aurangabad, Oct 16: The Aurangabad Municipal Corporation (AMC) has claimed that its decision of outsourcing the responsibility of maintaining ... ...

Beijing, Oct 16 iQOO is all set to launch its latest Z-series smartphone, the iQOO Z5x, in China ... ...

Beijing, Oct 16 China's National Meteorological Centre (NMC) on Saturday renewed a blue alert for a cold wave, ... ...

Beijing, Oct 16 Consumer electronics brand TCL has released the first binocular full-colour MicroLED AR glasses 'Thunderbird Smart ... ...

New Delhi, Oct 16 China's energy crisis is expected to give cost and production advantage to India's chemicals ... ...