According to recent reports, the shipbreaking industry at Gadani is on the verge of imminent closure at it faces a huge fall in its world ranking. No new vessels have arrived at Gadani since the new year started as Bangladesh has been the leading marketplace. The FBR has been considering some adjustments to sales tax collection mechanisms which can potentially devastate the ship breaking industry even further. The Pakistan Ship Breakers’ Association (PSBA) has appealed to the Government, requesting their immediate attention to help save the crisis-ridden industry.
The shipbreaking industry has been supplying raw materials to small rerolling mills in the country and providing low-cost steel for the Prime Minister’s Low Cost Housing Project. The shutdown of this industry threatens the jobs of around 20,000 workers in Balochistan and more than 200,000 people across the country. The PSBA has appealed to the Government to provide them with a “level playing field”. with other steel sector industries to sustain the highest revenue generating industry in Balochistan.
Ship breaking market sentiment shows no improvement this week – This week has been no better for Gadani as a declining sentiment prevails. Prices for Wet Bulk Cargoes have been estimated at a stagnant USD 410/LDT – 420/LDT whereas Dry Bulk Cargo has been assessed at USD 400 – 410/LDT. Containers have again been evaluated at USD 420 – 430/LDT.
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