Industrials that Benefit from Low Crude Prices

Industry is a major consumer of crude-based derivatives. Calcined petroleum coke, for instance, constitutes an average of 70 per cent of the total raw material costs for welding equipment manufacturers. Electric equipment manufacturers use base oil, a derivative of crude. Transformer oil is totally dependent on base oil for raw material. Here are two companies that stand to gain from the fall in crude but a weak client industry could shadow mid-term profits. Graphite India Close to 72 per cent of Graphite India's total raw material costs are crude-based derivatives. That makes Graphite India a major beneficiary of the fall in crude prices. The company is one of the country's top manufacturers of graphite electrodes. Graphite India's electrodes are used in the electric arc furnace (EAF) method of steel manufacturing. Unlike the