SK Capital Suffers in Chemicals Slump Since 2022 as China Glut and Energy Shock Bite
Updated
Updated · Bloomberg · May 16
SK Capital Suffers in Chemicals Slump Since 2022 as China Glut and Energy Shock Bite
2 articles · Updated · Bloomberg · May 16
SK Capital has emerged as one of the biggest casualties of a chemicals downturn that has dragged on since the second half of 2022.
2022 marked the turning point: Russia’s invasion of Ukraine triggered an energy shock just as China pushed cheaper chemical products into global markets.
That combination has produced what analysts describe as a “once-in-a-generation” crisis for the sector, undermining bets across the industry.
The pressure on SK Capital underscores how a prolonged supply-demand imbalance and elevated input costs have reshaped chemicals investing well beyond a short cyclical slump.
With energy shocks and Chinese exports rewriting the rules, is the West's chemical industry facing permanent decline?
As a major investor flees the chemical sector, is this a warning sign for all industrial manufacturing?
Will this historic downturn force the carbon-heavy chemical industry into a much-needed green revolution?