Despite Gadani’s reopening for tankers back in April, Pakistan has truly failed to click back into gear again. As the lowest placed Indian subcontinent market, it was no surprise to see them miss out on their share of market (and private) tonnage for another week, despite plenty of decent, large LDT units being proposed for sale.

The Pakistani Rupee has endured a shocking time during the second half of the year and end Buyers are still reeling from the unexpected and major depreciation that was recently witnessed.

Additionally, the confidence of a majority of recyclers has been shaken after a series of accidents on tankers being recycled locally, leading to the recent arrest of a yard owner and a thorough review of the industry and its safety standards could well be demanded once again.

In the interim, the declining levels mixed in with the arrival of some wet units being heavily scrutinized by local authorities has not only left local Recyclers wary of their (wet)  purchases, but  also  Ship Owners and Cash Buyers who  now face  delays and renegotiations upon arrival.

As such, it truly is a precarious time to try and sell wet tonnage into Pakistan.

Source : Strategic Research Institute, SteelGuru