Ship Recycling Industry Struggling across all four major destinations: BEST OASIS
The world’s leading cash buyer for ships sending for recycling, BEST OASIS in their weekly ship recycling market report opined that the ship recycling industry continues to struggle across all four major destinations. In India, the market remains stagnant with no available tonnage and little hope for improvement until after the monsoon, as the new budget has failed to generate momentum. Bangladesh sees minimal interest from recyclers due to the monsoon, international steel prices, and low demand for ship scrap, though a few recyclers are still showing interest despite political challenges. Pakistan’s market conditions remain poor with few active buyers and minimal activity. In Turkiye, the market is virtually inactive, showing no signs of progress or activity for an extended period.
The global shipping industry is facing disruptions similar to those seen during the COVID-19 pandemic, significantly impacting various sectors. A severe container shortage is worsening supply chain issues. With rising freight rates, shipowners are more inclined to keep their vessels in operation rather than sending them for demolition, resulting in fewer ships available for scrapping and contributing to the sluggish conditions in ship recycling destinations.
China’s steel exports are projected to hit a record high in 2024 due to overproduction and declining domestic demand. Analysts foresee reduced steel consumption in China for the coming years, which will impact global steel prices and consumption.
India
Market stagnation continues amid depressed conditions and lack of tonnage.
The market remains unchanged from the previous week, with a lack of available tonnage, indicating a continued state of depression.
We can only expect potential relief after the monsoon season, as the new budget has not succeeded in stimulating market momentum.
India’s steel ministry has requested the commerce ministry to investigate imports of cheaper steel from China, Vietnam, and other sources and provide recommendations to the Ministry of Finance. Preliminary data shows India became a net importer of metal products in 2023/2024, with rolled goods imports hitting a five-year high in April and May 2024. The availability of such cheap steel also impacts the ship’s steel scrap market.
Beaching Dates
02 August to 08 August 2024
17 August to 26 August 2024
31 August to 06 September
500 400 300 200 100 0
Bangladesh
Price for Recycling Ships in Bangladesh Market sees minimal interest from recyclers due to monsoon, steel prices, and low ship scrap demand.
The situation remains unchanged from the previous week, with minimal interest from recyclers in acquiring new ships.
The primary factors are the monsoon season, international steel prices, and low demand for ship scrap.
Although the political situation remains unfavourable, there are still a few recyclers demonstrating interest.
Bangladesh’s foreign exchange reserves fell by USD 1.30 billion to USD 20.49 billion in July. The net reserve dropped to USD 15.47 billion last month. Additionally, Bangladesh Bank instructed some banks to offer a higher exchange rate for US dollars to attract remitters to send their income through formal channels.
Beaching Dates
04 August to 07 August 2024
19 August to 22 August 2024
02 September to 05 September
Pakistan
Price for Recycling Ships in Pakistan Market conditions unchanged, remaining challenged with minimal activity and few active buyers.
The market remains the same as last week, continuing to be in poor condition. With only a few active buyers, there is minimal market activity.
The revival of the Pakistan Steel Mill and the establishment of a Special Economic Zone (SEZ) on the remaining land are being discussed.
Pakistan’s central bank cut the key interest rate by 100 basis points to 19.5 percent, following June’s reduction from a record 22 percent due to easing inflation.
Fitch Ratings upgraded Pakistan’s long-term foreign currency issuer default rating from CCC to CCC+, citing increased certainty of continued external funding.
Beaching Dates
Throughout the month
Türkiye
Price for Recycling Ships in Türkiye Market in hibernation: no activity, movement, or tonnage for quite some time now.
The market is practically dead, showing no signs of activity and remaining stagnant for an extended period. There has been an absence of any movement or progress for a long time now.
On the political front, Turkey has blocked NATO-Israel cooperation since October due to the Gaza war, insisting NATO should not engage with Israel until the conflict ends.
Beaching Dates Throughout the month
