The ship recycling has retained its upward momentum over the past week. In its latest weekly report, Best Oasis a leading cash buyer of ships said that “the Indian market remains positive, with buyers continuing to show interest for available recycling tonnage. However, India currently remains the least competitive among the three subcontinent destinations, with price levels trailing both Pakistan and Bangladesh. While buying interest is present, Indian buyers are finding it difficult to compete against the stronger appetite and higher levels being offered by Pakistan and Bangladesh. Overall market conditions remain stable with no major movement during the week, although sentiment continues to remain on the positive side. The Bangladesh market continues to remain positive, with a decent level of buying \interest still evident despite some softening in the local market. Local market conditions have eased slightly during the week, resulting in buyers adopting a comparatively measured approach rather than showing aggressive demand. Nevertheless, Bangladesh remains competitive for suitable recycling tonnage and continues to perform above India in the present market. Overall sentiment remains healthy, with buyers still actively considering available vessels despite the softer domestic backdrop”.
Meanwhile, “Pakistan continues to lead the subcontinent recycling markets, with strong buying appetite and buyers presently operating at comparatively high levels. The market remains in a buying spree, with Pakistani buyers showing greater aggression and competitiveness than their counterparts in India and Bangladesh. Demand for suitable recycling tonnage continues to remain firm, allowing Pakistan to maintain its position as the front-runner among the three destinations. Overall sentiment remains strongly positive, with buyers continuing to actively pursue available vessels. Finally, in Turkiye, “the Turkish lira weakened further during the week, reaching a new record low, while overall recycling market conditions remained largely unchanged. Demand continues to remain limited, with relatively low levels of buying activity presently being observed in the market. On the supply side, vessels heading to Turkey for recycling continue to be largely driven by EU regulatory requirements. In certain cases, owners also opt for Turkish recycling facilities when damaged vessels are positioned nearby, making Turkey a practical and economical destination. Despite subdued demand, overall sentiment remains relatively firm, as most recycling facilities continue to remain in a healthy position with a significant number of vessels already committed well in advance”, Best Oasis concluded.
In a separate report this week, shipbroker Intermodal said that “India’s recycling market has gathered momentum, with buying interest broadening from niche tonnage into more mainstream candidates even as Alang’s pricing continues to lag that of regional rivals. Firmer domestic steel plate values have added to the improved tone, offering further support to bids. Persistent rupee depreciation against the dollar, compounded by inflationary pressure, is eroding the purchasing capacity of local yards and tempering expectations for how far the current improvement can be carried. Gadani carried the previous week’s fundamentals forward, with keen buying appetite meeting a thin list of recycling candidates and prices continuing to firm, leaving Pakistan the most competitive destination in the Subcontinent. With demand outstripping the limited tonnage on offer, competition for the units reaching the market has pushed bidding to increasingly assertive levels.
The fall in Iranian steel imports has lent further support, alongside a constructive domestic backdrop in which mill demand remains strong and plate values are increasing. In Bangladesh, the market retains a broadly positive tone, with active demand focused on mid- and smaller-sized dry bulk candidates. However, buyers remain cautious, monitoring the steel market’s direction, currently sluggish with declining prices as monsoon-related adverse weather has impacted market mobility. On the economy front, signals are encouraging. Foreign reserves have accumulated to their highest level in recent years, while inflation eased m-o-m in July, adding a optimistic note to the broader outlook. Turkey’s market remains subdued, with currency weakness limiting buyers’ purchasing power and consequently demand. Candidates list continues to be underpinned by vessels moving under EU regulation, though optimism persists for a further inflow of tonnage ahead. On a positive note, the local steel market presented improving signs”.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
