The effect of petroleum price fluctuations on profitability ratios of composite sector

Composite industry mainly depends on chemical additives, polymer or metal matrix, and reinforcement materials. Those inputs forces industry to be highly depended to petroleum products and side products, that are crucial raw materials for composite industry. Therefore, any fluctuating variable in petrochemical sector cause a direct influence on price of resins. In this study the impact of fluctiations of oil price on composite industry is investigated by applying Non-parametric Mann Whitney and Wilcoxon tests at the points where oil price break occur. Results show that, the impact will eventually reaches to composite industry by affecting its cruical raw materials so that, the sector will response by changing demand on particular resin type, price on final product and research and development studies for product differentiation or exploration of new substitute materials.