Ship Recycling market remains sluggish: BEST OASIS
World’s leading Cash Buyer for ships sending for recycling “BEST OASIS” in their weekly ship recycling report opined that this week, the ship recycling markets across the major destinations continued to face a challenging environment. In India, the market remains sluggish with low demand and limited tonnage availability, and no signs of recovery are expected until after the monsoon season. Bangladesh is experiencing similar issues, with hesitant buyers and a cautious market approach contributing to the ongoing slump. Pakistan’s market has been subdued due to market closures from strikes, holidays, and monsoon rains, keeping buyer interest minimal. In Türkiye, while conditions are stable, negative sentiment and limited vessel offerings continue to weigh on the market, prolonging the downturn.
Ship recycling activity remains subdued as shipowners opt to keep older vessels in operation rather than recycling them, driven by high market rates and profitability. Geopolitical factors, including Russian sanctions and strong demand for seasoned ships, have further dampened interest in recycling, particularly in the tanker and gas sectors. Despite some fluctuations, overall recycling levels have significantly declined, reflecting a broader trend where maintaining older vessels is more profitable, reshaping the dynamics of the ship recycling industry.
India
The market outlook remains bleak amid low demand and ongoing monsoon disruptions.
The market continues its prolonged slump with no signs of recovery, as demand remains low and tonnage is unavailable. The situation is expected to stay negative until the end of the monsoon season.
Heavy rainfall, particularly in Gujarat, has halted construction activities, which is further impacting steel prospects and exacerbating the market’s challenges. The ongoing monsoon conditions are likely to maintain this negative trend for the foreseeable future. 0
India is under pressure as one-third of its steel imports come from China, pushing the trade deficit to ₹11,592 crore in April-July, a 30% rise from FY24. The government is reassessing import restrictions on raw materials for steelmaking to balance industry needs with global trade. These restrictions have sparked debates over their impact on raw material supply and production costs, prompting discussions on possible policy adjustments.
Beaching Dates
31 August to 06 September 2024
15 September to 24 September 2024
03 October to 08 October 2024
Bangladesh
The price for Recycling Ships in the Bangladesh Market decline persists as cautious buyers and low demand shape the uncertain landscape.
The market continues its downward trend, experiencing significant declines, with the local steel market also struggling under similar conditions. Market participants are largely adopting a cautious approach, closely observing the situation over the next one to two months.
Currently, there are very few buyers in the market, and those present are not aggressive, opting instead to offer lower prices. This lack of demand and the careful stance of participants reflects the uncertain market conditions, contributing to the prolonged slump in overall activity.
The Bangladesh Bank has raised its policy rate by 50 basis points to 9% to address high inflation, marking the third increase in the key interest rate this year.
Beaching Dates
17 September to 20 September
01 October to 04 October
16 October to 19 October
Pakistan
Price for Recycling Ships in Pakistan Weak demand, declining steel prices, and frequent disruptions keep the market in a prolonged slump.
The Pakistan ship recycling market remains subdued, impacted by recent market closures due to holidays, strikes, and monsoon rains.
Weak demand and ongoing uncertainty are reflected in the lack of interest in tonnage, keeping the market in a prolonged slump. With buyers hesitant and no clear signs of improvement, the sector continues to struggle under persistent challenges, showing little hope for a near-term recovery.
Traders in Pakistan shut down businesses in major cities to protest rising electricity costs and new taxes on shop owners. The government has been steadily increasing electricity prices since securing a USD 7 billion loan agreement with the International Monetary Fund last month.
Beaching Dates Throughout the month
Türkiye
The price for Recycling Ships in the Türkiye Market remains steady but is weighed down by negative sentiment and vessel shortage.
The market remains stable; however, sentiment continues to be overwhelmingly negative. In recent months, the ongoing shortage of vessel offerings has highlighted the underlying problems that continue to weigh heavily on the market, keeping it in a prolonged slump.
The IMF views Türkiye’s recent economic policies positively, noting reduced crisis risks and improved confidence. It projects lower inflation and stable growth in 2024 and 2025 despite some external risks.
Beaching Dates Throughout the month
