The Indian rupee continued its devaluation reeling under the after effect of Euro collapse down 3.8 % in the last week the biggest slide since 11.7% in mid July 1996.
Foreign institutional investors have withdrawn nearly USD 2 billion from Indian stocks so far in May, reducing net inflows in 2010 to USD 4.6 billion. The withdrawals were a key factor for the rupee''s fall this month.
The only saving grace is the 3G auction which garnered an unexpected response and prudently the government has asked firms which have won the spectrum to pay up by May 31. The inflows are expected to limit the downside for the rupee.
The coming days will be viewed with acute attention and the even small happenings will be analyzed under a microscope given the fragile and precarious revival of the global economy. Skeptics are already firing salvos at the current approach to impose extreme austerity thereby leading to a weaker economy and lower tax revenues, and so the reduction in deficits will be much smaller than hoped.
The increased input costs are likely to hit the bottom line of auto and white goods companies giving rise to optimization of their steel purchase, which is normally a big ticket item.
In general purchase managers are busy in sourcing too many items. Many of them, despite steel being very high value item, tend to depend on market feedback on one or more people in their supply chain giving chance for biased inputs at times.
We can support your steel purchase optimization drive by providing you an independent and unbiased input on domestic as well as global steel prices. With our input, your steel purchase group can remain alive to changes in market prices and trends, which would enable them to take more considered decisions for own purchase as well as controlling you vendors.
As these sectors require mostly flat steel products like HR, Plates, CRC and HDG, we have designed a special package to cater to you needs.