Under pressure from crude price rise

INVESTING INSIGHT

The stocks of companies engaged in the carbon and chemicals business have been more or less stable in the last three months from June to August on the Bombay Stock Exchange (BSE).

While the prices slightly dipped in July there were back in August to around the same level as in June.

The share price of Phillips Carbon moved from Rs 50.20 on June 1, to today's close of Rs 49.50, down 1.39 per cent on the BSE.

During the same period the stock price of Oriental Carbon & Chemicals moved up from Rs 10.00 to Rs 10.21, by 2.1 per cent, Indo Matsushita Carbon Company decreased from Rs 86.20 to Rs 80.00 down 7.19 per cent.

The rising prices of carbon black which is heavily influenced by the international crude prices is likely to keep the pressure on the producing companies.

This would lead to a natural spin-off on one of its main users, the tyre industry as well. By value, carbon black accounts for 23 per cent of the raw materials after rubber which accounts for 52 per cent.