Ship Recycling: Market continues to struggle in India: BEST OASIS
World’s leading cashThis week in the ship recycling market saw consistent challenges across regions, with demand largely stalled and activity slow. In India, the market continues to struggle under prolonged low demand and stagnant trends. With Diwali just around the corner, expectations remain muted, and any hopes for recovery are now set for November, relying heavily on broader market shifts that feel uncertain at best. In Bangladesh, buyer interest remains but is slowed by issues such as banking restrictions, local regulations, and pending environmental policies. The recent government change has added an adjustment period, creating an uncertain environment for transactions. Pakistan’s market showed a brief spark of activity but quickly settled back down as limited local support slowed momentum and ongoing deals. Türkiye ended the week much like the last, with market conditions holding steady and little to report in the way of change. Altogether, this week highlights an industry waiting for movement yet faced with familiar obstacles across the board.
Global growth faces growing uncertainties as geopolitical and economic risks deepen, with rising Middle East tensions, strained US-China relations, and an increasingly volatile trade environment, noted by the World Bank and IMF at their annual meetings. Leaders emphasized the urgent need for global cooperation to support vulnerable economies and tackle rising protectionism, which could further destabilize international trade. The IMF cautioned that without decisive actions from major economies to address issues like China’s weakening real estate sector and soaring global debt—projected to surpass 100 trillion USD by year-end—the world may encounter deeper financial instability, potentially stalling recovery and impacting economic stability worldwide.
India
A stagnant market is expected through Diwali; recovery remains uncertain.
The market is currently experiencing challenges, with demand levels at a prolonged low and market trends remaining consistently negative. As previously outlined in prior reports, local demand remains extremely subdued, contributing to a sustained market stagnation.
The market is expected to stay quiet through Diwali, as we predicted. Could things pick up by the second week of November? It’s uncertain, as any real recovery will depend on broader market factors finally moving in the right direction—though that remains a big “if.”
The Indian economy is projected to grow by 7-7.2 percent in the current fiscal year, driven by strong government spending and increased investments in manufacturing. However, slower global growth may impact the outlook for the upcoming fiscal year.
Beaching Dates
31 October to 07 November 2024
14 November to 21 November 2024
29 November to 07 December 2024
Bangladesh
Price for Recycling Ships in Bangladesh Market slows as buyer interest faces regulatory challenges and adjustments from recent government change.
The market is currently slow, with limited activity despite buyer interest. Buyers are facing challenges related to banking restrictions, local regulations, and pending environmental laws. Following the recent government change, the recycling market is in an adjustment phase as regulatory frameworks are refined, adding some uncertainty to industry operations. Bangladesh Bank has raised the policy or repo rate, a key monetary policy tool, to combat inflation. This marks the fifth increase this year and the 12th since May 2022. The central bank has increased the policy rate by 50 basis points to 10%, effective from October 27, according to a circular issued.
Beaching Dates
30 October to 02 November
14 November to 17 November
30 November to 03 December
Pakistan
Price for Recycling Ships in Pakistan Demand slows as limited local market support impacts recycling activity and momentum.
The Pakistan ship recycling market is currently experiencing slow demand, with a recent, short increase in activity that quickly faded.
This drop in demand is primarily due to limited support from the local market, which has impacted ongoing transactions and market momentum. Pakistan has formally requested 1 billion USD from the IMF’s Resilience and Sustainability Trust to address climate risks. This request is in addition to the 7 billion USD bailout package already approved for the country.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye Market remains in a holding pattern, echoing last week’s unchanged pace.
The market remains stagnant, with conditions mirroring those of the previous week. Activity shows no signs of change, reflecting the same trends observed in recent weeks. Türkiye’s steel production in September 2024 grew by 6.5% compared to the same month in 2023, reaching 3.09 million tons, but was 1.7% lower than August. From January to September, total production rose by 13.8% to 27.91 million tons.
Beaching Dates Throughout the month
