Falling crude oil price to boost margins of synthetic textile manufacturers

Volatility in six months distorted business strategy, margins to improve post March quarter

Synthetic textile manufacturers are set to see their profit margins improve in the January–March quarter, due to a sharp fall in the price of crude oil, the key raw material used extensively to produce industrial inputs like man-made fibre, yarn, fabric and textiles.

Brent crude oil prices have risen by 22.5 per cent to $86 a barrel in October from the level of $66.72 a barrel in March. Brent has declined by 37 per cent from its peak to stabilise at this year’s low of around $60 a barrel in December, resulting in huge volatility following political instability in Saudi