Ship Recycling: India saw downward trend : BEST OASIS

Ship Recycling: India saw downward trend : BEST OASIS

World’s leading Cash Buyer for Ships sending for Recycling BEST OASIS in their weekly Ship Recycling Report opined that this week in the ship recycling industry, India saw a downward trend in the market, with prices dipping as the Diwali festival approaches, further dampening activity. The slowdown is likely to persist until post-Diwali when a potential recovery could emerge. In Bangladesh, the market remained stagnant, with no significant movement in prices or activity. Pakistan saw little change as well, aside from a price correction driven by increased inquiries for smaller vessels, though no deals were closed. Türkiye’s market stayed unchanged, reflecting the usual dormancy. Overall, the industry seems to be drifting with little wind in its sails, showing minimal change across the major markets 

China is preparing to introduce a USD 283 billion stimulus package to boost its economy, following a recent move by the central bank to lower the reserve requirement ratio (RRR) by 50 basis points, allowing more money to flow into the economy. The country has been facing challenges like weak consumer spending, a real estate market downturn, and heavy debt in local governments, which have reduced demand for steel and metal products. As a result, Chinese steel producers have been exporting steel at lower prices, disrupting global markets and forcing other steelmakers to reduce their prices, which has not only led to financial losses but also shifted the dynamics of the steel industry. This new stimulus is expected to revive domestic demand, particularly in sectors like real estate and infrastructure, which may help curb cheap steel exports and bring balance back to the global steel market. 

India

Market down amid festive slowdown, potential post-Diwali recovery anticipated. 

The market is down and has dropped by approximately ₹1000 (around $12 USD) over the last two days. 

With the Diwali festival approaching at the end of the month, market activity typically slows down, which is expected to further weaken market sentiment. The current decline may already reflect the subdued market activity usually seen during the festive season, with lower activities. 

We anticipate that post-Diwali, the market could see some correction, as activities gradually pick up after the festive lull. 

India’s steel production is expected to rise by 32.9% to over 186 million metric tons by 2030, with ferrous scrap playing a key role in reducing emissions, according to S&P Global report. The country aims for 300 million metric tons by 2030, with 50% of steel feedstock from scrap by 2047. 

Beaching Dates 

15 October to 23 October 2024

31 October to 07 November 2024

14 November to 21 November 2024 

Bangladesh

The price for Recycling Ships in the Bangladesh Market shows little change with low activity, soft prices, and limited buyer interest. 

The market has shown little change from previous weeks, and the continued weakness in the local market is adding to the overall slowdown. 

Sellers are keeping prices low, but there hasn’t been any aggressive selling or a significant uptick in market activity.  Although there has been some price correction, it’s primarily due to a few buyers willing to do business, leading to a slight increase in the prices reflected in the charts. 

Bangladesh is facing its weakest economic growth in decades, with the World Bank projecting a growth of only 4% for fiscal 2024-25, down from a previous estimate of 5.7%. This marks the lowest growth estimate in nearly 30 years, excluding the pandemic-affected year of 2019-20. 

Beaching Dates 

16 October to 19 October

30 October to 02 November

14 November to 17 November 

Pakistan

Price for Recycling Ships in Pakistan Market sentiment remains unchanged with limited activity and slightly renewed interest. 

The market continues to show no significant shifts, maintaining the same conditions as observed in the previous week. 

Apart from the sale of a cape-size vessel in Pakistan, there has been no significant shift in steel market sentiment or prices. Despite the steady market sentiment, a price correction was made due to increased inquiries for smaller vessels (6,000 to 10,000 tons). Although there’s renewed interest, no deals have been closed, and the correction also accounts for the gap between the selling price and the end price. 

The IMF has urged Pakistan to halt the creation of industrial zones offering investment incentives, potentially hindering efforts to attract Chinese industries. In its latest report, the IMF advised against tax breaks and subsidies in new or existing special economic zones to ensure a level playing field for investment. 

Beaching Dates 

Throughout the month 

Türkiye

Price for Recycling Ships in Türkiye The market sentiment stagnates, meanwhile, the country imposes  anti-dumping tariffs on steel imports. 

This week’s market sentiment remains unchanged, closely reflecting the sentiment of the previous week. The market is usually caught in a period of inertia, with no notable shifts or momentum Turkey has imposed significant anti-dumping tariffs on steel imports from India, China, Russia, and Japan, with China facing the highest impact. The new duties, ranging from 6.10% to 43.31% of CIF prices, aim to address “unjust competition” following complaints from domestic producers. China’s tariffs are the steepest, between 15% and 43%, while those on Russia, India, and Japan range from 6% to 9%. 

Beaching Dates Throughout the month