Continued Chinese dumping in dimer acid
Chinese suppliers benefit from export incentives (~13%) and lower import duty (7.5% vs 16.5% on raw materials), pressuring margins.
FAIRCHEMOR / Q3-FY26 / risks
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Fairchem Organics · Material risks, their source context, and severity in the latest available quarter.
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Risk intelligence
Material risks this quarter
high
Paint sector demand weakness
Lower uptake from paint segment due to market share disruption from new entrants; no major recovery seen yet.
Trade deal delays or unfavorable terms
Recovery hinges on US/UK/EU trade deals; any delay or unfavorable terms could prolong export weakness.
Raw material price volatility
Edible oil prices have risen 25% in last two months; import duty differential (16.5% on raw materials vs 7.5% on finished goods) hurts competitiveness.