Ship Recycling : there is slight improvement seen in ship recycling industry in India : Best Oasis

The world’s leading cash buyer for ships sending for recycling, Best Oasis in their weekly ship recycling report opined that there is slight improvement seen in the ship recycling industry in India, but the demand is still lacking.

This week, there has been a slight improvement in the ship recycling industry in India. However, the demand is still lacking, leading to a state of confusion and uncertainty about how long this situation will persist. Bangladesh is currently facing a slow pace in its market, with only a limited number of buyers seeking to acquire tonnage. The lack of financing facilities and a less aggressive market have contributed to this situation. Pakistan is currently in a state of observation, proceeding cautiously. The upcoming elections are eagerly anticipated, as they will determine the future course of events. In contrast, Turkey experienced no changes in its local market and a marginal uptick in imports, accompanied by rising demand. 

The revised World Economic Outlook, published by the IMF, detailed an increase in the projected global economic growth rate for 2024 from 2.9% to 3.1%. Growth remained below the historical average of 3.8%, according to the IMF, due to elevated interest rates and sluggish productivity growth. The global economy is currently undergoing the last phase of decline toward a gentle landing, demonstrating an extraordinary degree of resilience. 

UNCTAD (United Nations Conference on Trade and Development) has expressed concern about the current global trade disruptions occurring in the regions spanning from the Red Sea to the Black Sea and the Panama Canal. It cautioned that the increasing frequency of attacks on vessels in the Red Sea, together with political tensions impacting commerce in the Black Sea and the consequences of climate change on the Panama Canal, have led to a multifaceted difficulty that is impacting crucial trade routes.

INDIA

The market has seen a slight improvement, although the demand is still lacking. 

It is evident that the current state appears confusing and the duration of this state remains uncertain. 

In the most recent Union budget released on February 1st, there were no revisions or modifications to the tax, customs, or GST. However, infrastructure capital expenditures have increased by 11.1%. This is anticipated to result in a strong domestic demand for steel, which will in turn stimulate private investments and facilitate the generation of employment opportunities. The emphasis on constructing physical, social, and digital infrastructure at an unprecedented rate is encouraging. This is an indicator of what the July budget will consist of. 

Beaching Dates 

08 February to 15 February 2024

23 February to 27 February 2024

08 March to 15 March 2024 

BANGLADESH

The market is currently experiencing a sluggish pace and a lack of demand. 

The local market appears to be lacking in competitiveness and remains relatively subdued. 

The lack of bank or LC facilities among all buyers, coupled with the fact that international shipowners do not offer vessels at discounted rates, has resulted in only a minority of buyers with LC facilities attempting to acquire tonnage at a premium of 10–15 USD. 100 

Ship recyclers are trying to pick up the dwindling market, but they are unable to do so since there are no prospects. 

After Bangladesh Bank increased the rate by 50 basis points, banks are permitted to impose a maximum interest rate of Secured Overnight Financing Rate (SOFR) plus 4 percent on short-term trade financing in foreign currency. Businesses that need short-term foreign currency loans will incur increased expenses as a consequence. 

Beaching Dates 

11 February to 14 February 2024

26 February to 29 February 2024

11 March to 14 March 2024 

PAKISTAN

The market is currently moving at a slow pace and is being closely monitored. 

The markets are experiencing a significant slowdown. 

This coming week, there are two national holidays on February 5th and February 8th due to the election. It’s uncertain how the upcoming week will unfold. People are eagerly anticipating and closely observing the results. 

The Central Bank of Pakistan maintained its key interest rate at 22% as a countermeasure to the significant inflation rate of over 40%. 

The IMF has revised Pakistan’s economic growth forecast for the current fiscal year to 2 percent, which is 0.5 percentage points lower than its previous estimate of 2.5 percent in October. 

Beaching Dates 

Throughout the month 

TURKIYE

The local market has remained unchanged, while imports have grown and demand is growing. 

The local market has remained stable, similar to the previous week, despite a 3 USD increase in imports. However, there is an observable growth in demand. Turkey’s December 2023 crude steel production was 3.2 million tons, up 21.2 percent over the same month in 2022. Although the overall production for 2023 was modest, it increased towards the end of the year. 

The IMF increased its 2024 economic growth prediction for the Turkish economy from 3 percent to 3.1 percent. It maintained its 3 percent estimate for Türkiye in 2025. 

Beaching Dates Throughout the month