As with Bangladesh, there was little material reason for Pakistani buyers to reduce their levels quite as drastically as they have done over the past few weeks. As ever, a watchful eye has been cast over movements in the Indian market, with some (quite frankly) ludicrous numbers being quoted off the back off recent setbacks in India.
The facts are that the Pakistani currency and steel prices remain steady, yet the cheap import of Chinese steel is forcing sentiment lower, with end buyers failing to shift the inventories on their plots at anywhere near buying price.
However, Gadani buyers have been the first in the industry to lobby the government to increase duties on the import of Chinese steel, in order to give themselves a fair chance of selling their stockpiles for even marginal profits. Talks have not proved fruitful so far, but this is an ongoing process and many are hoping for a breakthrough in the near future so that buyers can get back to business as usual.
The one sale for the week saw the full spares SCI suezmax tanker GANDHAR (22,347 LDT) sold for a decent USD 9.7 million ‘as is’ Mumbai (with extra payment for VAT and fuel required) the delivered price of which nears USD 490 per LT LDT, making this a very firm sale in today’s market.
Source: steel guru. 19 November 2014http://www.steelguru.com/international_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_WEEK_46/353026.html