Ship Recycling: The market experienced a noticeable improvement in India: BEST OASIS
World’s leading Cash Buyers for ships sending for recycling “BEST OASIS” in their weekly ship recycling market report opined that this week, the ship recycling industry displayed varied dynamics across different regions. In India, the market experienced a noticeable improvement, particularly in the local scrap market, which brought a wave of optimism. However, the rapidity of this change also introduces uncertainties about its lasting impact. Bangladesh’s market remained stable yet slow, as recyclers took a cautious stance, opting to wait due to potential future declines in prices, which stifled market activity. Meanwhile, Pakistan’s sector did not see significant shifts in demand or pricing, but the recent approval of a substantial IMF aid package might set the stage for more positive changes shortly. Turkey’s market mirrored last week’s stagnation, with little to no change in imports or local activity. Overall, while there are pockets of optimism, such as in India, the global ship recycling market generally continues to navigate through a phase of cautious optimism and relative inactivity, requiring careful monitoring and strategic adjustments moving forward.
The outlook for the global economy, as highlighted in the World Economic Forum’s September 2024 Chief Economists Outlook, suggests limited improvement ahead. A majority of economists (54%) anticipate the economic landscape to remain stable over the coming year, while 37% predict further deterioration. Despite some encouraging signs, including reduced inflation and resilient global trade, the report warns that any stabilization is occurring at one of the weakest levels seen in decades.
India
The market sees rapid and unexpected improvement, but uncertainty surrounds its longevity.
The market landscape is showing signs of improvement, which has come as a rapid and unexpected development. Particularly notable is the increase in the local scrap market, where prices have surged by approximately USD 12 per tonne.
The sudden and surprising nature of this improvement raises uncertainties about its sustainability, making it challenging to predict the duration and stability.
The Indian Steel Association (ISA) has raised concerns that the recent 25% tariffs imposed by the United States on Chinese-imported steel will negatively impact the Indian steel industry. The ISA warned that these trade measures could lead to a diversion of Chinese steel towards India, exacerbating challenges for the domestic market.
Beaching Dates
03 October to 08 October 2024
15 October to 23 October 2024
31 October to 07 November 2024
Bangladesh
Price for Recycling Ships in Bangladesh Market remains low as recyclers exercise caution amid potential price declines.
The market conditions have remained consistent, mirroring sentiments from the previous week and continuing a trend seen over recent times.
Recyclers are currently adopting a cautious stance, influenced by the expectation that prices might drop further. This mentality has resulted in a slow and sluggish market, with many recyclers choosing to observe rather than engage in new transactions. This wait-and-see approach is contributing to reduced market activity.
Bangladesh’s economic outlook has worsened, with the IMF comparing its low revenue collection to that of South Sudan. Additionally, the Asian Development Bank has reduced its growth forecast for the 2024-25 fiscal year to 5.1%, a significant decrease from the previous 6.6%, citing supply disruptions caused by political unrest.
Beaching Dates
01 October to 04 October
16 October to 19 October
30 October to 02 November
Pakistan
Price for Recycling Ships in Pakistan Market stagnation in Pakistan: IMF bailout aims to stabilize economy amid industrial challenges.
The market remains unchanged with no significant fluctuations in prices or demand this week.
Despite this stagnation, the IMF’s recent approval of a USD 7 billion aid package backed by significant financial assurances from China, Saudi Arabia, and the UAE is expected to stabilize the currency and could indirectly impact future market dynamics.
Meanwhile, in the broader steel industry, economic challenges have forced a major steel company to temporarily halt operations at one of its key mills in Karachi, reflecting the severity of the financial strains affecting industrial production.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in TürkiyeMarket stagnation persists with no notable changes in imports or local activity.
The market continues to show minimal shifts or movements, remaining almost identical to how it was last week, with no improvements in imports or local activity.
The Turkish central bank has raised the reserve requirement ratios for Turkish lira deposits, with short-term ratios increasing from 12% to 15% and long-term from 8% to 10%. Additionally, adjustments were made for the reserve ratios of lira-denominated reserves for foreign currency deposits.
Beaching Dates Throughout the month
