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 2014
http://www.steelguru.com/international_news/GMS_weekly_report_on_Pakistan_ship_breaking_industry_for_WEEK_46/353026.html
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