28 August 2014

GMS weekly report on Pakistan ship breaking industry for WEEK 34 of 2014:

Perhaps the first signs of trouble on the horizon surfaced this week in Pakistan with a currency that had started to creep above PKR 101 against the US Dollar (having been at PKR 98.5 the previous Monday).

While most end buyers are refusing to panic, believing that such fluctuations are often seen in the Pakistan currency and a quick recovery is often forthcoming, there are those who comment that this may affect prices negatively by as much as USD 10 to USD 15 per LT LDT.

Furthermore, with political tensions continuing to afflict the region, in addition to many of the hot buyers taken up with well priced tonnage recently, it may be that Pakistan sees some form of a cooling period ahead (having dominated as market leaders for almost two months now).

This may well see more vessels diverted to Indian and Bangladeshi buyers who are starting to see their prices come up (and in some cases beyond) Pakistan buyers, to offer viable competition once again.

Source: steel guru. 27 August 2014

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