Ship Recycling Market Steadies | Hellenic Shipping News Worldwide

The ship recycling market has steadied across various markets, over the course of the past week. In its latest weekly report, Best Oasis (www.best-oasis.com), a leading cash buyer of ships said that “this week, the ship recycling industry across key regions remained relatively stable, with most markets seeing little change from the previous week. In India, the market continues to follow a familiar pattern of brief recovery phases followed by downturns, reflecting ongoing volatility. The current festival season and low demand for steel have further influenced the market’s stagnant performance. Similarly, in Bangladesh, the market remained soft, showing no significant improvement as sluggish activity persisted. The overall lack of momentum in the market points to a prolonged period of subdued performance. In Pakistan, the market remained unchanged, with local steel prices continuing to decline and scrap prices weakening further”, Best Oasis said.

It added that “similarly, in Türkiye, while the market remained stable, import prices saw a decline, adding to the pressure on the local industry. Overall, the global ship recycling sector continues to face a challenging environment marked by weak demand and falling prices. The escalating conflicts in the Middle East could have a significant impact on the global economy, potentially disrupting oil and natural gas markets. Rising tensions may influence oil prices and create uncertainties in global energy supply chains, with possible broader implications for various sectors. The Middle East, while less dominant in the global gas market, still includes major producers like Qatar and Iran, whose outputs could be compromised by regional instability. Saudi Arabia and the UAE have developed alternative oil shipment routes to reduce dependency on more vulnerable pathways, but these alternatives also face risks of disruption if conflicts intensify”, Best Oasis concluded.

In a separate note, shipbroker Intermodal noted that “the ship demolition market experienced another slow week with limited activity and continued downward pressure in key recycling regions. A combination of weak steel demand, political uncertainty and economic instability kept recyclers cautious, resulting in little change overall. In India, the market remained volatile with recyclers refraining from making any significant moves. Local steel demand remained low due to the ongoing festive season and while prices for imported scrap fell, recyclers remained reluctant to commit to new tonnage.

Discussions on the imposition of tariffs on Chinese steel imports continued, but there was no immediate impact on the market. In Bangladesh, political instability and economic challenges continued to weigh on the market. Local steel prices held steady, but demand for recycled materials remained soft. With ongoing uncertainty in both political and economic spheres, recyclers showed little interest in increasing their offers, leading to stagnation in the market. Pakistan saw a similarly muted market. Local steel prices softened slightly, and recyclers resisted any upward movement in their bids. Liquidity constraints and a challenging economic environment left many recyclers on the sidelines, with minimal interest in new transactions”, the shipbroker concluded.

Nikos Roussanoglou, Hellenic Shipping News Worldwide