Raw-material prices down, companies will benefit from living

In the March quarter of 2014-15 fiscal, Indian companies have shown a reduction in income. But the situation is even more acute in the fiscal year from January to March months Kempten of raw-material would have been not less. Raw-material costs, the difference in the share of sales in the quarter, which is 46.06 per cent recorded in the December quarter of 2002 is the lowest since 45.3. Experts believe that the remainder of the fiscal year in raw-material prices remains stable. The companies will keep their manufacturing costs under control as well as their operating profit margins will increase.

Companies behind this saving crude oil and other petrochemical raw-material related sharp and significant fall in the price of the products come. Brent crude oil to $ 110, with a sharp fall to $ 54 a barrel touched low levels. During the same time the coal, copper, iron ore, steel, rubber, and other industrial raw-material prices in Kotn declined. This lack of demand, delays in projects and income problems facing Indian companies such as dimming the chances of getting some relief.

Experts believe that with RAW-Material prices remain below the cost of financing is low; the operating profit margin will grow as companies and companies with uncertain benefit. Raw material prices in the last few quarters, Indian companies Ibita margin improvement is being recorded. Indian companies demand and compensate for loss of income from reduced raw-material can. The decline in interest rates in the coming quarter’s net profit margin and return on investment is expected to increase. According to market experts Kurd oil, coal and iron ore demand will decrease in industrial demand but by higher prices of industrial metals such as copper and zinc may increase. While running in China coking coal and metallurgical coal prices Dachagt reforms will remain dim.

The situation remains on iron ore. Many metals are sold at prices below their production costs. This allows the market expert nickel, aluminum, copper and zinc likely to pick up a few who harbor. The raw-material steel companies, they also gain this year is likely to be good. Steel prices in the international markets are still ongoing at 380-400 dollars per ton. By the end of the year, steel prices are expected to remain near these levels. The monsoon is a major cause of concern for the market. Remains weak monsoon this year on behalf of the companies will reduce purchases of raw-material and in the absence of demand will not benefit from lower prices of raw-material.

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