Ship Recycling: The Indian Market is Uncertain: BEST OASIS
World’s leading cash buyers for ships sending for recycling BEST OASIS in their weekly ship recycling report opined that this week, recycling markets across regions like South Asia and Turkiye remained largely subdued, showing mixed trends. In India, a modest post-festival demand boost lent minor stability, though its persistence is uncertain. Bangladesh saw limited demand and minimal transactions, with prices holding steady but soft as many steel mills face challenges that restrict operations. Pakistan’s market stayed quiet, constrained by limited local scrap supply and reliance on imports. Turkey’s market was almost at a standstill, with minimal movement and no signs of near-term change. As year-end approaches, buying activity could see an uptick in November and December, potentially influencing price dynamics.
A period of potential change may be on the horizon. With Donald Trump’s return to the White House, the stage is set for possible economic shifts. His agenda includes tax cuts aimed at boosting domestic production, high tariffs to discourage outsourcing, and a shift from green energy back to fossil fuels. These policies could bring renewed momentum to the economy, but they also carry the risk of rising prices and inflation, which may lead the Federal Reserve to keep interest rates high. Trump’s push for stricter immigration measures, including an expanded border wall and increased deportations, could also affect labor dynamics. The impact of these bold actions remains uncertain, leaving America on the edge of a new economic chapter full of possibilities —and the ripple effects may well be felt around the globe, potentially reshaping international trade dynamics, energy markets, and geopolitical alliances.
India
The market shows a subtle post-festival lift, but the future remains uncertain amid broader trends.
The market remains relatively steady with minor fluctuations over the past few days. Although there have been slight improvements recently, the sustainability of this uptick is uncertain.
There is a modest increase in post-festival demand, marking an improvement from the previous lull. However, how the market unfolds remains to be seen and will largely depend on broader economic conditions and global scrap metal trends.
India’s GDP is expected to stay within the 6.5-7% range, supported by strong capital expenditure and urban consumption, with minimal impact anticipated from the recent U.S. election results, though financial market volatility remains a potential risk.
Beaching Dates
14 November to 21 November 2024
29 November to 07 December 2024
12 December to 20 December 2024
Bangladesh
Price for Recycling Ships in Bangladesh The market remains soft with minimal activity, low demand, and ongoing financing challenges.
The market remains soft, with very low demand and minimal transaction activity.
Although only one or two deals have occurred recently, prices have been held steady, largely reflecting these limited but stable price points. Buying activity is expected to increase in November and December as the year ends, which may lead to some downward pressure on prices.
Steel mills are hardly operating at optimal capacity, adding to the slow market conditions. Persistent LC issues continue, with only a few banks able to facilitate transactions, limiting participation to financially strong buyers.
The Bangladesh Bank has eased financial pressure on six struggling banks by removing the 100% margin requirement for opening LCs. This decision, aimed at stabilizing these banks, is expected to improve market conditions, particularly for sectors like steel, which have faced operational slowdowns due to limited LC access.
Beaching Dates
14 November to 17 November
30 November to 03 December
14 December to 03 December
Pakistan
Price for Recycling Ships in Pakistan Market remains subdued with limited supply, as Chinese imports shape local pricing amid recent economic shifts.
The market remains depressed, with local pricing hard to determine due to limited availability from ship recyclers. Chinese imports continue to dominate and influence the local market. Vessel pricing is difficult to assess, as there have been no recent purchases.
However, a slight price adjustment was made in response to recent positive economic developments, including improved control over illegal steel imports, a corrected interest rate, and a stable Pakistani rupee against the dollar.
The government plans to revitalize Special Economic Zones (SEZs) by transferring Karachi Industrial Park (KIP) to China. KIP, one of nine SEZs under the China-Pakistan Economic Corridor (CPEC), is being developed on land from the inactive Pakistan Steel Mills (PSM).
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye Market at a standstill with minimal activity and no signs of immediate change.
The market is in a near standstill, with hardly any movement and minimal activity— almost as if in a prolonged pause. There’s been no spark of change or momentum, keeping conditions steady but muted.
Any immediate shift seems unlikely, and the market appears set to remain in this subdued phase.
In September 2024, Turkish steel scrap imports dropped 26.8% from August to million tons but were 34.8% higher than the same month last year. Total imports from January to September reached 14.96 million tons, a 6.3% year-on-year increase, valued at 6.3 billion USD (up 8.9%). This suggests fluctuating monthly demand yet overall growing needs in the Turkish steel sector compared to last year.
Beaching Dates Throughout the month
