The recycling industry is currently facing negative sentiments, as reported by cash buyer GMS. The market for recycling ships seems to be declining, and there are very few recyclers willing to make realistic offers on the limited number of vessels available.
One of the main reasons for the slowdown is the heavy monsoon rains, which are preventing cutting and recycling activities at shipyards in the sub-continent. As a result, the market is barely making any progress, with only a few vessels being committed for recycling.
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Cash buyers and vessel owners are not accepting some of the opportunistic offers being made, leading to a standoff on many unsold vessels. Despite one confirmed sale of a Sinokor-controlled container at an extraordinary price to Bangladesh, GMS warns that this is not an accurate reflection of the current market conditions.
On a positive note, there have been inquiries from Pakistan, which could potentially open up a new direction for cash buyers and recyclers in Gadani, as they have been out of the game for a while.
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India’s sub-continent market has slipped to the lowest position, with a shortage of green ships and specialist units. The Alang buyers are seeing minimal tonnage and new arrivals, as evident from the lack of fresh arrivals reported in the local port position this week.
Similarly, the Turkish market remains quiet, mirroring the sub-continent markets’ situation.
