• The market remains depressed with little
activity compared to recent months, and the main problem facing cash
speculators is to actually find an interested breaker.
• The talk of the town this week concerns
the budgets that have been announced in Pakistan and Bangladesh. The initial
reaction is that the Pakistan budget is negative towards the industry, whereas
the Bangladesh announcement is relatively neutral adding no real change. In
Pakistan, the sales tax on the re-rollable material obtained from the
shipbreaking industry was increased, which some parties suggest will hit the
price for tonnage downwards by about USD 15-20 per ldt. Other sectors of the
local steel industry have also been hit by tax increases and in response they
have approached the government for the revision in the sales tax increase
recently made in their budget. In view of this, the government have established
a committee comprised of different sector members to look into the matter. How
long this exercise will take and whether any reversal decisions will be made or
not remains to be seen.
Source:
Clarksons. 11 June 2012
http://www.clarksons.net/sin2010/markets/Market.aspx?news_id=32690
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