Ship Recycling: Market in India remained unchanged: BEST OASIS
The world’s leading cash buyer for ships sending for recycling BEST OASIS in their weekly ship recycling report opined that this week in the recycling markets was characterized by stability and subdued activity, with some hope for improvement. In India, the market and sentiment remained unchanged, with optimism for a year-end boost as December trends often bring increased activity. Bangladesh experienced a sluggish market but noted a small price increase due to a two-month deadline extension for yard owners, prompting slightly higher offers from recyclers. Pakistan stayed stagnant, with no activity or progress throughout the week. In Turkiye, the downturn persisted, with weak demand and low activity continuing from the previous week. While significant improvements were absent, there is some anticipation of better trends in the weeks ahead.
The global economic landscape is on the verge of facing heightened uncertainty as the United States considers imposing 100% tariffs on BRICS nations over their plans to develop a new currency to challenge the U.S. dollar’s dominance. This move could significantly escalate geopolitical tensions and reshape global currency dynamics. The BRICS bloc has been actively advancing “de-dollarisation” strategies to reduce reliance on the dollar and counter Western financial influence. Discussions at the 2022 BRICS Summit highlighted plans for an “international reserve currency” backed by a basket of BRICS currencies and potentially precious metals, signaling a transformative shift in the global financial order.
India
The market remains stagnant with steady sentiment and cautious optimism for improvement ahead.
The market and sentiment remain unchanged from the previous week. There is a slight optimism that the market may improve in the coming days, as year-end trends often bring a December surge.
The Reserve Bank of India lowered FY 2024-25 GDP growth projection from 7.2% to 6.6% and raised the inflation forecast to 4.8% from 4.5%, citing an 18-month low GDP growth of 5.4% in the July-September quarter.
China’s steel overcapacity is challenging India, with exports matching India’s entire production and entering indirectly via free trade agreements with third-party nations. To safeguard domestic manufacturers, the Ministry of Steel has proposed a 25% duty on certain steel imports, aiming to counter unfair competition and protect the integrity of the local industry.
Beaching Dates
06 December to 07 December 2024
12 December to 20 December 2024
Bangladesh
Price for Recycling Ships in Bangladesh The Local market is sluggish with a slight price rise due to the extension
driven interest.
The local market remains sluggish, much like the previous week. A slight price increase has been observed compared to the prior week. This increase is due to the ministry granting a two-month extension to yard owners, shifting the deadline from mid-November to January 31, 2025.
Following this extension, some recyclers are now willing to pay marginally higher prices. Bangladesh Bank has lifted restrictions on six banks facing liquidity crises, allowing them to open letters of credit for imports. The banks have been restructured with new boards and supported with a Tk 225 billion bailout. These include Islami Bank, First Security Islami Bank, Social Islami Bank, Union Bank, Global Islami Bank, and Bangladesh Commerce Bank.
Beaching Dates
14 December to 17 December
Pakistan
Price for Recycling Ships in Pakistan The market remains stagnant with no activity, progress, or developments.
The market has shown no signs of activity or progress, remaining completely stagnant. There have been no developments, movements, or sales, reflecting a continued lull.
Pakistan, facing a USD 26 billion debt repayment this year, got a USD 3 billion deposit renewal from Saudi Arabia to boost its reserves and is negotiating similar deals with China and the UAE.
China is Pakistan’s largest lender with USD 29 billion in loans, followed by Saudi Arabia with USD 9.16 billion, as the World Bank warns of Pakistan’s weak financial position.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye The market downturn persists with weak activity and declining demand trends.
The market is facing a downturn, marked by weak activity and low demand. As reported in the previous week, the market had already shown signs of slowing down, and the situation has since persisted.
The Turkish steel industry, currently operating at 62.6% capacity utilization, aims to increase this to 70% by 2025. Despite global challenges, the sector is focused on boosting production and employment to recover from past losses, with no signs of contraction.
Beaching Dates Throughout the month
