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