Published on December 22, 2014

Paint industries are likely to gain indirectly through lower raw material costs as in the last six months crude oil prices have dropped more than 40%. Currently sharp fall in the prices of crude oil is giving positive impact to paint and coating producers as they are buying raw material at very lower prices.

Industry Source said that owing to uncertain market condition buyers are not buying any material in bulk they are buying only need based material, as they have adopted wait and watch policy to further decline in the prices of products.

Recently paint industry is running with firm velocity on account of uncertainty about market outlook. According to the industry experts, shares of paint makers turn down on profit booking after recent steep rally triggered by sharp fall in crude oil prices.

Moreover, major paint manufacturers Berger Paints and Shalimar Paints have drop down by 2.98% and 5.44%, whereas Asian Paints and Kansai Nerolac Paints were noted down by 3.18% and 1.36%, respectively. At the same time Akzo Nobel India another major paint manufacturer had rose by 2.11%. However, the fall in crude prices have augur well for paints makers.

According to the industry analysts, the movement has been too sharp to be justified by the results that paint industry players will expect, certainly in December quarter, however they will not see any significant positive impact of the crude price cut. However as per the market players, the paint market is noted to be remaining in a bullish phase.