GMS weekly report on PAKISTAN shipbreaking industry for WEEK 22 of 2011:

The results of the Pakistan budget started to filter through to local buyers this week and as expected, there was very little discemable change.

Duty was 0%, income tax 1%, and sales tax 16% the same figures as before the budget. However, that is not to say Pakistan buyers will resume their buying at pre-monsoon levels. Far from it in fact with many buyers feeling that the market will reverse up to PKR 2,000 per tonne leaving many of those purchases made in the 520s per LT LDT several months ago looking particularly costly.

Needless to say, there were no new sales to report this week, with a gross disconnect evident between local levels, cash buyer prices and expectations of owners and brokers. Likewise capacity remains of paramount concern with most yards stuffed with tonnage already and end buyers happy to digest what they have before moving on to new candidates.

Source: Steel Guru (Sourced from GMS Weekly). Tuesday, 07 June 2011

http://www.steelguru.com/middle_east_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_WEEK_22/208612.html