Ship Recycling: Indian Market remained Quiet with inconsistent buyer interest: BEST OASIS
The market remained quiet, characterized by selective buying and overall cautious sentiments. India was still stagnant with weak demand and inconsistent buyer interest. Discussion of anti-dumping duty took place, but they have yet to bring any tangible impact. In Bangladesh, buyers were looking for smaller vessels to keep the yards running while larger vessels struggled due to foreign exchange constraints, widening the price gap between small and large vessels by USD 30-40 per ton. Pakistan saw some activity with local sales boosting the yards and buyers preparing for green recycling. Türkiye saw a small increase in imports but the overall market remained unchanged. With no change on the horizon, buyers are cautious, and financial constraints are still affecting the market. A strong external driver is needed to break the cycle of stagnation and selective buying.
Reports suggest that the administration of the U.S. is mulling over Russia’s sanction lift as a part of diplomatic dealings regarding Ukraine. If this occurs, then the global economy will be affected massively. As it is, energy markets will change significantly as Russian oil and gas exports increase, resulting in lowered pricing all over the world. At the same time, economies and markets will be disrupted and investments will slow down on alternate sources of energy such as wind and solar power. From a geopolitical perspective, these eased sanctions would worsen the U.S.’s relations with European allies who are in support of the sanctions, adding volatility in global trade. There would also be headaches from sanction policy differences for businesses operating out of Europe and the U.S., which would drive up operational costs. The impact may not be directly visible, but the changing trade dynamics can impact ship recycling, thereby affecting the volume for vessel scrapping which would tip the balance for steel prices globally.
India
The market remains subdued amid uncertainty; potential policy changes awaited.
The market continues to experience a phase of stagnation, with limited movement in pricing and demand. However, discussions around a possible anti-dumping duty could catalyze market improvement shortly.
A notable trend has been observed—buyers actively inquire when there are no vessels available, but once vessels enter the market or are offered, interest declines, indicating weak confidence and a cautious approach from buyers.
The overall sentiment remains fragile, with local buyers hesitant to commit despite initial inquiries, reinforcing the need for strong market triggers to restore momentum.
Beaching Dates
13 March to 18 March
27 March to 31 March
01 April to 05 April
Bangladesh
Price for Recycling Ships in Bangladesh The market activity remains centred on smaller vessels amid financial strain.
Buyers are actively seeking smaller vessels (8,000-12,000 lightweight) to keep yards running, while demand for larger tonnages remains weak due to funding constraints. The ongoing shortage of foreign exchange and strict banking restrictions have made it increasingly difficult to finance vessel purchases, further limiting market activity.
As a result, the price gap between smaller and larger vessels has widened to USD 30-40 per ton, reflecting a cautious and selective approach to acquisitions. With financial uncertainty looming, buyers are adjusting their strategies to navigate the challenging conditions.
Beaching Dates
14 March to 17 March
29 March to 01 April
12 April to 15 April
Pakistan
Price for Recycling Ships in Pakistan The market sees a slight revival with local tonnages sold, bringing some momentum.
Local sales have provided a much-needed boost to recycling yards, breaking the prolonged silence in activity. Buyers are making strategic purchases to prepare yards for green recycling, aligning with upcoming Hong Kong Convention requirements.
Despite the local market not fully supporting such purchases, this renewed activity is a welcome change.
Prices have been adjusted upward by 20 to 30 USD per ton, not due to any major shift in market fundamentals but rather to keep up with pricing levels in other key recycling destinations.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye The market remains unchanged with no developments, while economic recovery faces new challenges.
Import activity has seen a modest uptick. Despite this, local market conditions remain unchanged, with no notable shifts in activity or sentiment.
Turkey’s central bank has cut interest rates for the third time since December, lowering the headline lending rate by 250 basis points to 42.5% from 45%. The decision was driven by easing inflationary pressures and cooling domestic demand, reflecting efforts to stabilize economic conditions.
Beaching Dates Throughout the month
