New Delhi, June 18 -- The global chemicals industry is showing signs of stabilisation after a prolonged downturn, though a sharp cyclical rebound remains unlikely in the near term, according to a report by 360 ONE Capital.

The report said that while challenges such as geopolitical tensions, elevated feedstock costs and weak construction demand continue to weigh on the sector, industry participants are becoming increasingly optimistic about the recovery trajectory heading into the second half of 2026 and 2027.

"Looking ahead, the industry outlook points to gradual recovery rather than a sharp cyclical rebound," the report said.

According to the report, agrochemicals appear to be moving out of a prolonged downturn, supported by improving...