Fed action to help the U.S. economy might
mean more demand for oil and other energy products.
Crude oil futures have jumped to $98.28 a
barrel (Brent Crude Oil - $116.60 a barrel) ahead of a widely anticipated
statement from the Federal Reserve's policy making board.
Petrochemicals prices have risen sharply
since July following high crude oil prices. Petrochemicals now find new
applications in plastic, rubber, nylon and nearly every commercial industry. Rise
in crude oil prices are generally perceived to be helpful for natural rubber
industry as it makes synthetic rubber costlier compared to former. Natural
rubber prices have started climbing after major rubber producing nations
announced curbs to export and production to stem sharp decline in prices this
year.
Indian consumers are worst hit due to falling
value of rupee against dollar making the raw materials more costlier. India is
a net importer of the by-product and domestic prices are set by tracking
international price. Most raw material prices have gone up between 10-15% in the
Indian market.
Today, Indian government further raised the
price of subsidised diesel by 12% or Rs.5 per litre, to rein in the fiscal
deficit. A cabinet committee agreed to raise diesel prices and restricted sales
of subsidised LPG cylinders to six per consumer annually. It left petrol and
kerosene prices unchanged. The measures are effective from Friday.
Read
lot more in Rubber4U – 15th September 2012 issue
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