Rising prices of consumer goods following higher raw material prices

MUMBAI: In addition to higher crude oil prices, the rise in metals has led to a resurgence in prices of consumer goods, including durables and paints. Crude oil prices have risen sharply in recent weeks. Prices of aluminum and copper used in the manufacture of durables have also risen significantly in the recent past.

The rise in raw material prices has put pressure on companies manufacturing consumer goods, including durables and paints.

Crude derivatives such as titanium dioxide and linear alkaline benzene are used in the manufacture of paints and detergents. In addition, high-density polyethylene, which is a derivative of the oil, is used in the manufacture of most consumer products such as soap, hair oil, shampoo and packaging materials for toothpastes, said one analyst.

Crude oil prices have risen more than 50 per cent in the last six months. Prices of metals like aluminum, lead, nickel, etc. have gone up by 3 to 4 per cent in the last six months.

Steel prices have also risen by 30 per cent in the last six months, while China's iron ore prices have risen by 21 per cent.

As demand for consumer goods is expected to increase with the unlocking in various states of the country after the second wave of Corona, manufacturers are in the mood to pass on the rise in raw material prices to consumers and have increased the prices of products by five to six per cent. Car prices are also on the rise due to the rise in steel prices.