Polymer imports get dearer in India as rupee weakens vs dollar

The Indian Rupee has seen sharp declines vs the US dollar over the past 5-6 weeks. From a high of 43.855 vs the dollar on August 1, the rupee has weakened to 48.1258, as per Platts. This 7-9% depreciation in the currency has contributed to rising costs of polymer imports. As a result, buyers who purchased imported cargoes with Letters of Credit earlier this year, are estimating to pay more when the bank executes the payment at the end of the LC term. This could also result in higher off take of domestic materials which are not exposed to fluctuations in the currency. This switch in the buying pattern comes ahead of the high demand season of the Indian Diwali festival, which falls in late October this year. This could, as a result, exert downward pressure on the imports market, and lead to an uptrend for domestic prices. Buyers prefer to wait in the sidelines as they await October offers from key producers, expected to be announced starting next week.
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