This week, the main concern in the Pakistani market centered around an unexpected and alarming currency depreciation to the tune of about 5% (approximately PKR 5), something that has left end buyers understandably shaken and reluctant to offer anywhere near previous levels on unsold tonnage currently on offer.
Coupled with their ongoing (frustrated) attempts in trying to get the local market reopened for tankers, it has been a less than stellar week for the Pakistani market.
Surprisingly however, end Buyers continue to offer on and even conclude tankers albeit on a “conditional” basis, so confident have they been of tankers getting the green light soon. Moreover, certain speculative Cash Buyers are seemingly willing to take on such a risk and are reselling their tankers despite the uncertainty, possibly to minimize potential losses, now that numbers are starting to cool off.
Time will tell if such a strategy will in fact be an effective one. For now however, given that a timely market reopening is up in the air, just how tanker conclusions going forward will play out remains to be seen.
Source: steel guru. 28 March 2018