KARACHI: The breakable ships imports doubled in 2007, mounting to 44 vessels against 22 in 2006, marking a 100 percent upsurge, industry sources said.

"Due to the soaring demand for steel products in international and local markets the importers made extensive buying, which doubled the imports of scrap ships," Azam Malik, Chairman of Pakistan Ship Breakers' Association (PSBA), told Business Recorder on Saturday.

According to him, during 2007 Pakistani shipbreakers imported 44 demolishable vessels of 188,242 light displacement tonnage (LDT) as compared to 22 ships of 53266 LDT during 2006.

He said that the country's ships imports in terms of tonnage increased by 134976 LDT, or 253.399 percent. Azam cited Pakistan's tough competition with India and Bangladesh in international market as another reason for the remarkable rise in scrap ships imports. "We go for more buying to prevail against our competitors, India and Bangladesh, in the international market," he added.

He said that despite great fluctuation in the prices of scrap ships in international market the shipbreakers had to take the risk to meet local demand for steel. He said that it was the shipbreaking industry, which had brought the prices of steel products down in the country during almost the last 15 days.

"The prices of steel bars had skyrocketed to Rs 80,000 per ton just 15 days ago but they now range from Rs 62,000 to Rs 63,000 per ton due to scrap ship imports," he said.

The PSBA chairman eyed further increase in the imports of demolishable ships during the current year (2008). "This year our imports would double again and touch the 88 figure," Azam said.

It is interesting to note that the industry, which had once topped the world's shipbreaking industries and is a major source of quality raw materiel to the country's steel sector, is still working without proper arrangements for water, electricity and fuel in Gadani, Balochistan.


Business Recorder

There will be more ships going to scraps in 2-3 years time, and after that it might slow down.

Freight rates have come down a bit during the past 1-2 year, as a result more ships would be scrapped.