Pakistan’s ship-breaking industry currently meets 70 percent of iron, steel requirements

Karachi: Pakistan’s ship-breaking industry is currently meeting 70 percent of iron and steel requirements of the country, after increase in activity at Gadani shipyard in Balochistan, near Karachi, says Pakistani Engineering Development Board EDB report.

The demand for steel, steel-related products, non-ferrous products and machinery was facing shortage. Iron and steel obtained from ship breaking is being used in re-rolling and re-melting mills. Few years ago, ship-breaking industry was on verge of collapse with little activity, which made room for the smuggling of pipes from abroad which fulfilled requirements for some time but then this source of supply stopped, putting local mills in difficulty.

Most of re-rolling and re-melting mills are dependant on Gadani ship breakers for supplies. EDB’s report quotes Pakistan Ship Breaking Association as saying that ship-breaking activity at Gadani Shipyard has broken the record for the last 12 years with more than 50 big ships being hammered currently, while 95 percent of the old scrap is recycled and reused.

EDB said that, while ship prices in the international market are high, the increasing demand at home for steel and steel products has led to the purchase of more and more worn-out ships for dismantling. Karachi Iron & Steel Merchants Association says that currently Gadani ship breaking is providing most of the requirements of re-rolling mills in the country.

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