Ship Recycling: Market largely unchanged across key regions: BEST OASIS
The new year has naturally carried forward the cautious sentiment of the previous one, with the overall ship recycling market remaining subdued and largely unchanged across key regions this week. In India, while some demand is present, there hasn’t been any notable movement yet.
With the year just beginning and the upcoming budget on the horizon, some shifts may be anticipated in the coming months. In Bangladesh, the lingering challenges of the past year continue to weigh on market activity, keeping it subdued.
Recovery is expected to be gradual, with no major changes likely due to delays in elections. Similarly, Pakistan continues to experience a lacklustre market with little to no activity, and a turnaround seems distant. The Turkish market remains slow and inactive, which is in line with its typical trends.
Overall, the global ship recycling sentiment remains muted, and significant changes or improvements will take time to materialize.
The IMO has issued guidance to address conflicts between the Hong Kong Convention (HKC) and the Basel Convention after requests from BIMCO and countries including Bangladesh, India, Norway, and Pakistan. BIMCO is seeking clearer guarantees that shipowners complying with the HKC, set to take effect in June 2025, will not face penalties under the Basel Convention, which governs hazardous waste movements.
The guidance states that countries part of the HKC but not the Basel Convention should follow HKC rules, while those in the Basel Convention but not the HKC must adhere to Basel rules. For countries in both conventions—an unlikely scenario—they must inform the Basel Secretariat if they plan to apply HKC rules for recycling ships at authorized facilities.
While BIMCO considers this guidance a step forward, it highlights that regulatory overlaps remain unresolved, creating potential compliance challenges for shipowners.
India
Market sentiment mirrors the previous week, and movement is anticipated ahead.
The sentiment remains consistent with the previous week, and as mentioned earlier, there is some demand but nothing particularly noteworthy.
With the year just starting and the budget approaching, we can expect to see some movement in the next 2-3 months. In a strategic initiative to elevate the quality of steel products in India, the government has mandated that all steel manufacturers, including international producers operating domestically, obtain certification from the Bureau of Indian Standards (BIS).
India’s finished steel imports, predominantly from China, have reached an eight-year high, prompting the government to consider safeguard duties to protect the domestic industry. The Indian Steel Association asserts that the import surge has caused “serious injury” and threatens the industry’s competitiveness.
Beaching Dates
2 January to 06 January
Bangladesh
Price for Recycling Ships in Bangladesh Market remains calm as recovery continues and election delays
are anticipated in the coming year.
The conclusion of the previous year and the onset of the new one share a comparable sentiment. The direction for the weeks ahead will become more evident in due course. As of now, market activity remains subdued.
The setbacks and challenges of last year caused major disruptions, and it will take some time to recover and move forward smoothly.
The election will likely be delayed until next year, so major changes in this destination are unlikely anytime soon.
Beaching Dates 2 January to 05 January
Pakistan
Price for Recycling Ships in Pakistan Markets remains stagnant amid economic support and fiscal adjustments.
The market remains the same, the sentiment is unchanged, marked by a lull and dullness. It’s too early to anticipate even a modest recovery, as it will require time.
The UAE has provided USD 300 million in foreign financing to support Pakistan’s government, helping to strengthen its economy as the country faces challenges in managing external debt.
Pakistan has outperformed the tax revenue targets outlined by the IMF, recording a tax-to-GDP ratio of 10.8% compared to the 10.6% target for the fiscal year. This accomplishment paves the way for Pakistan to access the second installment of the IMF loan program.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye The market stagnation persists amid prolonged periods of inactivity.
This market remains unchanged, sluggish, and largely inactive, as it typically is for most of the time.
Turkish minimum wage workers will receive a 30% pay raise from January 1, following two weeks of negotiations announced on December 24. However, the increase, which may drive inflation, has disappointed unions and the opposition, who are now threatening to strike.
Beaching Dates Throughout the month
