Ship Recycling Market Showing Signs of Recovery

With the Indian ship recycling market waking up, sentiment is beginning to improve. In its latest weekly report, Best Oasis (www.best-oasis.com), one of the world’s leading cash buyer of ships, said that “this week in the ship recycling industry, India’s market displayed steady performance, maintaining its previous week’s trends, although future developments remain uncertain. In Bangladesh, activity was minimal, with buyers remaining cautious and the Ministry continuing its firm stance on issuing No Objection Certificates (NOCs), which are essential for recycling operations. Pakistan mirrored this inactivity, showing no significant market movements, although rising steel prices in China might spark interest in vessel recycling opportunities. Turkiye, on the other hand, noted a slight uptick, with marginal improvements in both import and local prices. Overall, the ship recycling industry is in a phase of careful observation”.

Best Oasis added that “while India showcases resilience, the markets in Bangladesh and Pakistan are relatively quiet, and Turkey’s improvements are subtle at best. This balance of stability and limited activity paints a picture of cautious optimism as stakeholders await clearer signals of growth. The escalating conflict in the Middle East presents serious risks to global economic growth and could reignite inflation. Israel’s warnings of retaliation against Iran following missile strikes are heightening uncertainty in the region. Compounding this are ongoing issues such as the repercussions of Hurricane Helene in the US and economic challenges in China. Additional pressures stem from the delayed effects of reduced trade, and uncertainties surrounding the upcoming US elections, all contributing to heightened global economic strain”.

In a separate report, shipbroker Intermodal said that “the ship recycling market has seen a mixed performance in the major destinations this week. In India, rising local steel prices have given a slight boost to recyclers’ confidence, although they are still cautious about taking on new business. Offers have increased modestly, reflecting the improvement in market sentiment. In Pakistan, however, the market remains subdued with little activity despite a slight increase in imported scrap prices. Improvements in the economy may encourage more interest in the coming weeks, but for now the sector remains quiet Bangladesh remained under pressure with falling local steel prices and minimal demand. Recyclers are reluctant to commit, hampered by ongoing regulatory constraints and weak construction activity.

Until the general economic outlook stabilizes, the market is likely to remain subdued. In Turkey, however, there was some improvement with local and imported scrap prices rising. Recyclers responded with higher offers, supported by a slightly more favorable economic environment. However, inflationary concerns remain, keeping overall sentiment cautious. Overall, the market remains in a wait-and-see mode, with regional differences influencing trends”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide