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After hovering at record highs, Brent crude prices have lost steam and are down to $75/bbl, currently. Given a weak global macro outlook, reports indicate crude prices will stay sanguine in the $75-85 range for the year. While that is good news for companies whose input costs are based on crude derivatives, it will be a negative for state-owned oil marketing companies (OMCs) which have had to bear the brunt of higher losses in FY23 as they could not hike fuel prices. Analysts expect PSU refiners’ gross refining margins to trend lower at $10.3-16.5/bbl owing to poor crude oil realisation.
Though the FAO Cereals Price Index has shown a fifth consecutive monthly decline, prices in India are still elevated. Cereal inflation has reached a new peak of 15% for urban India and 18% for rural India. Prices of wheat and paddy, which account for 80% of India’s total cereal production, are expected to stay high as India is exporting wheat since the Russia-Ukraine war has impacted supply from these two countries which account for 20-25% of global supplies. Food companies will have to take a hit on their gross margins if cereal prices stay elevated.
August 2025
As India continues to be the world’s fastest-growing major economy, Fortune India presents its special issue on the nation’s Top 100 Billionaires. Curated in partnership with Waterfield Advisors, this year’s list reflects a slight decline in the number of dollar billionaires—from 185 to 182—even as the entry threshold for the Top 100 rose to ₹24,283 crore, up from ₹22,739 crore last year. From stalwarts like Mukesh Ambani, Gautam Adani, and the Mistry family, who continue to lead the list, to major gainers such as Sunil Mittal and Kumar Mangalam Birla, the issue goes beyond the numbers to explore the resilience, ambition, and strategic foresight that define India’s wealth creators. Read their compelling stories in the latest issue of Fortune India. On stands now.
Rubber futures traded at 131 cents /kg, holding close to their lowest in 13 weeks, amid ongoing concerns about faltering demand from the biggest consumer, China. Natural rubber prices are now near a two-year low. But the downward trend in prices will improve margins for tyremakers. Analysts predict that for every 10% change in natural rubber, synthetic rubber and carbon black prices, operating profit margin will change by 160 basis points, 80 basis points and 100 basis points for tyremakers.
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