Up until the
final few months of the year, Pakistan buyers had been market frontrunners on
much of the larger LDT tonnage – particularly tankers gas free for man entry
only, including the majority of VLCCs.
The import of
Chinese billets has been particularly tough on local buyers who are now seeing
the existing inventories on their plots undercut by a cheaper (but lower grade)
of steel.
However, in a
turn of events, Gadani buyers are again looking to lead the market by placing
new import duties / taxes on the cheap Chinese steel and they are also limiting
the volume of steel collected from yards that is being resold to domestic mills
each week, to reduce competition.
2015 is expected
to be a watershed year for Pakistan, with pressure on moves towards greater
standards in yards (due to upcoming EU legislation) meaning that tankers going
to Pakistan may have to be cleaned gas free for hot works, as with India and
Bangladesh.
It is hoped that
Gadani buyers will embrace such responsibilities and continue to look to lead
the industry as they have done for large parts of this year.
Source: steel
guru. 31 December 2014
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