Ship Recycling Market Remains Subdued<\/p>\n
Hellenic Shipping News<\/p>\n
he ship recycling market was still subdued during the past week. In its latest weekly report, Best Oasis (<\/p>\n
), a leading cash buyer of ships said that \u201cthe Indian market has softened this week, with sentiment under pressure due to the rising exchange rate and a more cautious economic outlook. Buyers remain less inclined to commit at current levels, as higher day-to-day costs, slower construction activity and weaker steel demand continue to affect overall buying appetite. Specialized vessels are still expected to remain attractive for Indian recyclers, although broader demand is likely to stay selective in the near term\u201d.<\/p>\n
Best Oasis added that, \u201cthe Bangladesh market remains broadly similar to last week, with overall sentiment steady but activity slowing due to ongoing rainfall. Sales activity has reduced, while several yards are currently well supplied, making buyers less willing to acquire fresh tonnage at present price levels. Buying interest is expected to remain cautious in the short term until weather conditions improve and yard demand becomes more active. The Pakistan market remains largely unchanged this week, with sentiment continuing to hold firm. Supply constraints continue to support the market, as limited scrap, HMS and shredded material is being received from the Middle East, while fresh vessel availability also remains limited. Overall, the shortage of imported material and limited tonnage supply are keeping price ideas firm, although buying activity remains selective. Finally, the recycling market in Turkiye remains relatively stable this week, although sentiment continues to be affected by the depreciation of the Turkish lira, which has limited buying appetite and kept activity for fresh tonnage subdued. Most recycling yards, particularly EU-approved facilities, are operating at high capacity levels, resulting in limited availability for prompt deliveries and a cautious approach across the market. Overall, market participants remain watchful of currency movements and yard capacity developments, with sentiment expected to stay steady but cautious in the near term\u201d, the company\u2019s report concluded.<\/p>\n
Meanwhile, in a separate report, shipbroker Intermodal said that \u201cthe ship recycling markets in the Subcontinent saw a week of limited activity, amid inflationary pressures and scarcity of candidates. Alang saw a sluggish week, with declining buying interest as inflationary pressures weighed on the broader economy and activity stalled. Steel market conditions deteriorated further, with prices easing amid weakening demand fundamentals. The Indian rupee\u2019s slide to historic lows, driven by rising gold imports, a widening trade deficit, and elevated energy costs, has further darkened the outlook, reinforcing expectations of continued weakness across the recycling and steel sectors. In Bangladesh, the market remained subdued, broadly unchanged from the previous week, with activity still muted. Limited availability of suitable candidates, alongside elevated bunkering costs and cautious buyer participation, continued to weigh on sentiment, constraining transactional flow and keeping overall engagement low.<\/p>\n
On a more positive note, improvements in the LC system have shortened funding timelines, supporting smoother trade execution. The local steel market also remained lethargic, with minimal transactions. Weak demand for finished steel products continues to weigh heavily on overall market conditions. At Gadani, the segment has remained resilient despite a geopolitically driven backdrop of elevated energy prices. However, underlying stability appears to be supported more by supplyside constraints than by demand strength, reflecting a reduced pool of available candidates and lower inflows of imported supplies. On the macro side, April inflation surged to 10.9% from 7.3%, driven by transport and housing costs, while the central bank\u2019s first rate hike in three years appears to be providing supportive signals for the FX market. The Turkish market continues to be constrained by the ongoing currency depreciation versus dollar and inflationary pressures and uncertainty in a macro level. However, pricing is supported by limited tonnage availability and firm recycler appetite\u201d.<\/p>\n
Nikos Roussanoglou, Hellenic Shipping News Worldwide<\/p>\n
hellenicshippingnews…<\/p>\n