• The market remains depressed with little activity compared to recent months, and the main problem facing cash speculators is to actually find an interested breaker.
• The talk of the town this week concerns the budgets that have been announced in Pakistan and Bangladesh. The initial reaction is that the Pakistan budget is negative towards the industry, whereas the Bangladesh announcement is relatively neutral adding no real change. In Pakistan, the sales tax on the re-rollable material obtained from the shipbreaking industry was increased, which some parties suggest will hit the price for tonnage downwards by about USD 15-20 per ldt. Other sectors of the local steel industry have also been hit by tax increases and in response they have approached the government for the revision in the sales tax increase recently made in their budget. In view of this, the government have established a committee comprised of different sector members to look into the matter. How long this exercise will take and whether any reversal decisions will be made or not remains to be seen.
Source: Clarksons. 11 June 2012http://www.clarksons.net/sin2010/markets/Market.aspx?news_id=32690