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.
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