Ship Recycling: In India market is strong: BEST OASIS

Ship Recycling: In India market is strong: BEST OASIS

World’s leading cash buyers BEST OASIS for Ships sending for Recycling in their weekly ship recycling market report opined that, this week, ship recycling destinations experienced mixed performances: In India, the market is strong with rising booking prices driven by robust local demand. The post-election outlook is favourable, with anticipated growth fueled by increased steel demand and improved financial conditions. Bangladesh is seeing a slight downturn, with values dropping by approximately 4.26 USD per LT. Market corrections are expected following the upcoming budget announcement, which should help stabilize conditions. Currently, reduced buyer enthusiasm is cooling the market. Pakistan’s market remains steady but unchanged, reflecting a cautious mood as participants await key updates from the early June budget review, expected to stimulate the market. In Turkiye, the market continues to be stable, with no significant changes. Participants are on the lookout for tonnage opportunities that are not yet available. 

Global crude steel production dropped 5% year-over-year in April 2024 to 155.7 million tonnes, with China seeing a significant 7.2% decrease. Conversely, India and Germany reported increases of 3.6% and 6.4%, respectively. Production fell across several key nations, including Iran, South Korea, and Russia, with modest declines also in the US, Japan, and Brazil. Regionally, Africa and the EU saw slight production gains, while most other regions experienced declines. Despite this, the World Steel Association forecasts a 1.7% increase in steel demand this year, expecting further growth in 2025. 

Oil prices are experiencing their first decline in two weeks, with consecutive session losses leading to multi-month lows. The downturn is driven by concerns over prolonged high U.S. interest rates potentially stifling demand in the world’s largest oil market. Contributing to the bearish sentiment, the EIA ( Energy Information Administration) reported an unexpected rise in U.S. crude inventories, countering predictions of a significant draw. This situation is exacerbated by ongoing uncertainties about whether current interest rates will suffice to curb persistent inflation, potentially hampering economic activity and reducing oil demand.

INDIA

The market shows strong growth with rising demand and a positive post-election outlook. 

The market is currently exhibiting robust performance, underscored by consistently increasing booking prices. 

Strong local demand is significantly contributing to the market’s momentum. This persistent demand is a primary driver behind the market’s positive trajectory. Post-election, the outlook is optimistic with expectations of increased demand for steel and improved financial conditions. These factors are anticipated to further stimulate economic growth and enhance market conditions. 

In April, India’s engineering exports fell by 3.2% after four months of growth, mainly due to reduced shipments of metals like iron, steel, and copper. This decline was influenced by increased imports of cheaper Chinese steel and the Red Sea crisis, which impacted India’s export capabilities. 

Beaching Dates 

24 May to 29 May 2024

03 June to 11 June 2024

19 June to 28 June 2024 

BANGLADESH

The local market faces a downturn and subdued activity, with hopes for post-budget recovery. 

The local market is currently experiencing a slight downturn, with values down by approximately 500 takas (4.26 USD). We expect some market corrections after the budget is announced, which could help stabilize things. Currently, buyers are showing less aggression in their purchasing behaviours. This lack of enthusiasm is contributing to the market’s subdued activity. 

Bangladesh’s economy is expected to grow by 5.82% in the fiscal year ending June 30, a modest improvement from last year’s 5.78%. This projection is in line with the International Monetary Fund’s forecast of 5.7% and the World Bank’s estimate of 5.6%. 

Beaching Dates 

24 May to 25 May 2024

05 June to 08 June 2024

22 June to 25 June 2024 

PAKISTAN

The market remains stagnant with no major changes as participants await the crucial June budget review. 

The market has remained steady, showing no major positive changes over the past week, continuing its calm trend. This sustained quiet reflects a cautious mood among investors and market participants, who are waiting for important updates. 

The spotlight is on the upcoming annual budget review in early June. This financial update is expected to energize the market. 

The UAE Ministry of Investment has committed 10 billion USD to invest in key economic sectors in Pakistan. This pledge was announced following a high-level meeting between leaders of the UAE and Pakistan. 

Beaching Dates: Throughout the month 

TURKIYE

The market remains stable as participants look out for distant tonnage opportunities. 

The market continues to exhibit the same level of stability seen in previous weeks, with no significant changes. Participants are actively monitoring the situation, particularly keeping an eye out for tonnage opportunities that are presently not heading in their direction. 

The Turkish Central Bank projects an increase in the value of the Turkish lira and a significant reduction in inflation come June. This forecast aligns with the bank’s commitment to maintaining a tight monetary policy, which has supported sustained profitability within the banking sector despite prevailing high inflation conditions. 

Beaching Dates Throughout the month