Waiting Game Continues as HKC Rules, Geopolitical Risks Weigh on Recycling Sentiment : Best Oasis
Dubai | 25th June
This week offered little change across key ship recycling markets, with conditions remaining largely flat and sentiment subdued. Seasonal pressures in India continued to weigh on activity, as the advancing monsoon dampens steel demand, keeping end users on the sidelines. No improvement in market tone has been observed, and outlooks remain pessimistic in the short term.
Bangladesh remains inactive as buyers wait for the 26th June enforcement of the Hong Kong Convention. Only a limited number of HKC-compliant yards are available, and all are currently occupied with previous tonnage. With no capacity to take new vessels, the market is expected to stay quiet until the second half of next month. InIn
Pakistan, activity remains limited as recyclers take a wait-and-watch approach despite temporary regulatory allowances for non-HKC-compliant transactions. The broader transition toward compliance continues, with all yards expected to meet HKC standards by the end of the year. Türkiye continues to reflect its usual pattern of prolonged stasis. The market shows no meaningful shifts from previous weeks, with both activity and sentiment stuck in neutral.
India: The market remains deeply subdued as the monsoon dampens demand and buyer sentiment worsens.
The market remains under significant pressure this week, with overall activity muted. Domestic steel demand has slowed considerably and is expected to soften further as the monsoon season progresses.
Construction activity, a major driver of steel consumption, typically slows down during the monsoon season, leading to a seasonal dip in steel demand and overall market activity.
Buyer interest remains extremely limited, with sentiment firmly negative. The market is expected to remain subdued throughout the monsoon period, with no clear signs of recovery in the near term.
The Indian government’s abrupt revision of the Steel Quality Control Order, requiring immediate BIS certification for a broader range of steel products, has disrupted trade and added further uncertainty to an already weak market.
Beaching Dates: 22 June to 30 June, 22 June to 30 June.
Bangladesh: Price for Recycling Ships in Bangladesh. The market remains quiet as buyers assess yard availability and upcoming compliance changes.
The market in Bangladesh remains quiet as buyers with HKC-compliant yards await the enforcement of the Hong Kong Convention on the 26th of June.
Most of the HKC-approved yards are currently occupied with the earlier purchases; as a result, the buyers have lowered their price ideas as compared to the earlier levels.
Buying activity is likely to resume in the latter half of next month, once some yard space becomes available. Separately, more yards are in the process of obtaining HKC compliance, but that is expected to take additional time.
Bangladesh has received loan approvals worth USD 15 billion from the ADB and World Bank. While the immediate market impact is limited, the funding is expected to support broader development activity in the medium term.
Beaching Dates : 13 June to 14 June, 24 June to 27 June, 11 July to 14 July.
Pakistan: Price for Recycling Ships in Pakistan Activity remains limited under regulatory flexibility, with the HKC transition ahead.
The market continues to perform better than India for regular tonnage, while India maintains its lead on specialised vessels. Recyclers are waiting to assess the situation before stepping in, and activity has remained limited this week. As noted in the previous report, buyers have been operating through a regulatory window that allows purchases without HKC compliance. The government has agreed to keep this in place for the time being, though all yards are expected to comply with standards by the end of the year.
Beaching Dates: Throughout the month.
Türkiye: Price for Recycling Ships in Türkiye The muted market continues with sentiment unchanged from the previous week.
There has been no change in the market this week. Conditions remain similar to those of the previous week, with limited movement and sentiment still leaning negatively, and there has been no increase in activity.
The Turkish Central Bank kept its main interest rate steady at 46% and also maintained the upper limit of its rate range at 49%. This decision was more cautious than expected, as some had predicted a cut. The current rate levels suggest that any move toward easing policy is now more likely to happen later in the summer.
Beaching Dates: Throughout the month.
