Middle East Conflict Impact on Paint Industry In India

Middle East Conflicts are rising all of a sudden after the US interference. Thus, its impact on the paint industry in India will be no surprise. We already know the sector gets 55% to 60% of raw material from crude oils. Thus, the prices of the paint products anticipate an increase in future. The market is already apprehensive of future disruptions in the oil supplies leading to a rise of approximately 0.40% in the prices. The paint industry leaders are worried about the expected fluctuations in the paint industry, amid the ongoing Middle East conflict. But how can the Middle East conflicts impact the paint industry in India?

How Middle East Conflicts Could Paint A Different Picture For India’s Paint Industry?

The world has its eyes on the ongoing Middle East conflict between Israel and Iran. The countries’ conflicts can disrupt the oil supplies from the world’s top oil-producing region. As the fear intensified, the prices goes high on Wednesday after touching their all-time low weeks ago. There is a subtle rise in Brent futures by 0.46% to $73.90 per barrel, earlier at $73.56 per barrel. US West Texas Intermediate crude also rose by 0.39% to $ 70.10 per barrel, earlier $69.83 per barrel. This can further lift if the Middle East conflicts continue.

Iran recently fired more than 180 missiles at Israel. Thus, the country seeks revenge on Iran. The United States is also supporting Israel. Iran says that its missile attack on Israel is over now. If they attacked back, there would be destruction. The increase in the Middle East conflicts can also lead to disruption in the oil supplies of Saudi Arabia. The paint industry has witnessed a drop in its share prices. Asian Paint’s share price is currently Rs. 3,149.30 per share. It fell by 3.91% today. While Berger Paints had a share price of Rs. 597.05 per share. It fell by 3.65% today.

Middle East conflicts lead to an increase in crude oil prices. Thus, the cost of raw materials utilised in the paint industry will also increase. It will automatically increase the price of paint products because crude-related products form the basic raw material in the paint industry. While the stocks are already falling. It may fall further in future. Brent crude oil prices are affecting the stock market majorly because crude oil plays a crucial role as a raw material in several industries. Every sector uses different forms of crude oil for product manufacturing. Other industries using crude as a raw material include, petroleum, fuel in plants and factories, waxes, ships, pharmaceuticals, plastics, and daily life.