27 May 2014

GMS weekly report on Pakistan ship breaking industry for WEEK 21 of 2014

As the lowest placed Indian sub-continent market at present, it was discouraging for Gadani end buyers to see even their favored tankers head to Indian shores. Yet the demand to acquire new units from domestic yards is almost non existent, due to very real concerns that new taxes or duties may be imposed in the upcoming budgets in early June.

As a result, very few buyers are even offering on new tonnage, simply choosing instead to wait and watch and hope for the best ahead of the budget announcement. Therefore to the disappointment of many and indeed the frustration of cash buyers, several vessels are being diverted to India.

This lack of competitiveness will see Pakistan buyers miss out on a majority of the market units and an improvement would likely be needed after the budget, just to secure vessels once again.

Source: steel guru. 27 May 2013
http://www.steelguru.com/international_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_WEEK_21/340066.html

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