India’s ship recycling activity is continuing to decline : BEST OASIS

World’s leading ship cash buyer for recycling BEST OASIS predicted that, India’s ship recycling activity is continuing to decline.

We observed this week that India’s ship recycling activity is continuing to decline, with the country demonstrating little interest and low demand. Bangladesh continued as it had the week prior, but it still managed to secure a limited number of deals. In the same way that Pakistan reflected the sentiment it had the week before, Turkey also experienced a decline in activity this week. In a nutshell, there have been no favorable advancements observed in the recycling industry this week. 

In contrast to the still-relatively aggressive interest rate cut bets in financial markets, a survey of economists predicts that global growth will remain robust this year and only pick up slightly in 2025. The outlook for growth among the top economies is not consistent, with the US and India expected to be relatively strong, and the eurozone and China, the world’s second-largest economy, to be sluggish. 

The persistent missile assaults carried out by the Houthi rebels in the Red Sea are continually exerting an influence on diverse sectors of maritime commerce. These impacts surpass liner shipping and involve wet bulk, dry bulk, car carrier, and LNG trades as well. There are already noticeable repercussions on Western economies as a result of the aggression backed by Iran, including escalated costs of liquefied natural gas (LNG) in Europe. It is reasonable to conclude that the global economy is being significantly impacted by the Houthis’ actions in the Red Sea.

INDIA

The market maintains its current downward trajectory, with a persistently low level of demand. 

The market this week continues to show a downward trend, with no demand for scrap and vessels. 

India’s prominent steelmakers are requesting government action to regulate the cost of essential raw materials, including iron ore and coking coal. They have requested involvement and action over two primary price indexes, namely Platts and Argus Indexation, which are considered “subjective” in establishing the price of coking coal. It has been said that the two indexes do not accurately represent the real pricing. 

India’s business activity experienced significant growth in January, reflecting strong demand and suggesting that it will continue to maintain its position as the fastest growing major economy. The India Composite Purchasing Managers’ Index has touched its highest level since September. 

Beaching Dates 

26 January to 30 January 2024

08 February to 15 February 2024

23 February to 27 February 2024 

BANGLADESH

The current market conditions are similar to those of the previous week. 

The market position is identical to that of last week.  An insight derived from this destination is the absence of demand for vessel build from China. Bangladesh continues to confront the same challenges it previously faced, however it has successfully secured a few deals. Bangladesh imposes limitations on domestic lending to offshore banking units. By the end of 2024, banks will be required to bring back funds from their offshore units and  depend solely on foreign funding sources for these units in the future. Bangladesh Bank (BB) has recently added the Chinese Yuan to its Real-Time Gross TGS, according to a circular issued by the BB. 

Beaching Dates 

28 January to 30 January 2024 

11 February to 14 February 2024 

26 February to 29 February 2024 

PAKISTAN

No significant changes in the market this week, but subsequent weeks may have a decisive impact. 

The market continues to remain unchanged from the previous week, with no significant shifts in market conditions or sentiment. 

We may gain a better grasp or a more distinct perspective of this market in the upcoming weeks. 

The upcoming 8 February polls will have a significant impact on the prospects of Pakistan, determining the direction the country will take for the next five years. Pakistan is currently facing numerous challenges, including increasing poverty, the Container Tanker Bulker rise of militant extremism, and various social constraints. 

Beaching Dates 

Throughout the month 

TURKIYE

The market has experienced a decrease in activity, with a noticeable slowdown. 

The market is currently experiencing a sluggish pace with minimal activity. 

Türkiye’s central bank announced a 250 basis points increase in its key interest rate, bringing it to a staggering 45 percent. This comes as part of its relentless efforts to combat double-digit inflation. The move, in line with economists’ expectations, marks the latest step in a series of rate hikes since May 2023, raising concerns among Turks who are grappling with a weakened currency and surging cost of living. 

Beaching Dates Throughout the month