Falling commodity prices take sheen off margins

Producers, consumer industry play hardball to protect interest

With prices of most commodities, especially crude oil, metals and iron ore, falling, producing and consuming companies are in a tug-of-war to maintain margins.

Consuming companies want to lock part of their raw material costs by entering into medium-term supply contracts, which producing companies are resisting as much as they can.

Metal producers have benefited from rising prices over the past year. Even in the January-March period, prices of most metals were strong. However, this week has seen prices falling as global issues resurfaced. The elections in France and a possible exit from the EU, a slowdown in Chinese manufacturing