India PE buyers steer clear of import market as rupee tumbles

22 August 2013 11:59  [Source: ICIS news]

SINGAPORE (ICIS)--Polyethylene (PE) buyers and traders in India are avoiding the import market because of reduced purchasing power as a result of the weakening rupee, Mumbai-based market players said on Thursday.

The rupee tumbled to a fresh record low of above Rs65 to the US dollar on Thursday.

A weak currency makes imports more expensive.

“Buying ideas are much lower. Nobody wants to buy and make a loss,” a Mumbai-based trader said.

End-users in the domestic market are also taking a wait-and-see approach and are buying only on a need-to basis.

“Nobody is buying anything in the import market. It is a complete standstill,” according to another Mumbai-based trader.

By: Muhamad Fadhil
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