A The strengthening dollar has limited demand for older ships over the past week, but the overall market is showing a mixed performance. In its latest weekly report, the best oasis (www.best-oasis.com“The Indian ship recycling market witnessed a decline in buying interest this week, primarily due to the strong US dollar, making imports more expensive for domestic buyers. Market participants remain cautious as the strong dollar continues to weigh on sentiment and buying appetite. The DASR (Authority Document for Ship Recycling) process is still ongoing and is expected to be completed in the next two-three months,” a major cash buyer of ships said.
Meanwhile, “Bangladesh’s ship recycling market remained steady this week, with healthy demand observed across available tonnage.
Source: Best Oasis
Sentiment was supported by the evolving political landscape, which brought a more positive outlook to the market. Overall conditions appear stable. However, there are no major new developments to report at this stage. The Pakistani ship recycling market remained largely unchanged, with no new developments compared to previous weeks. Market activity remains subdued, with no ships on offer to the destination. In addition, the market is not yet fully operational, which contributes to the lack of activity and momentum. Finally, the Turkish ship recycling market showed some improvement in underlying fundamentals this week. Import prices rose by about US$8, while domestic steel prices improved by about US$10. Despite these positive indicators, ship prices have not yet reflected any upward movement. Market participants remain vigilant, with expectations that next week may provide a clearer trend.
In a separate report this week, ship broker Intermodal said, “Ship recycling markets remain vulnerable to energy disruptions in the Middle East, with mixed regional performance. The Middle East crisis continues to impact India’s steel and ship recycling markets. The impact is two-fold: Energy shortages are constraining the operations of steel mills and recycling yards, while the depreciation of the Indian rupee against the US dollar, amid the country’s reliance on imported oil and gas, is eroding purchasing power. As a result, market activity has slowed, with market participants holding out With a holding pattern, meanwhile, market estimates suggest that an increasing number of sanctioned vessels may be redirected to India, given the lack of explicit government restrictions on their admission.
Source: Multimedia
The Eid period briefly affected steel market activity, with operations halted for a short period. Meanwhile, the country faces challenges in maintaining energy flows amid turmoil in the Middle East, although the local currency has remained relatively resilient against the US dollar. On the compliance front, progress towards HKC standards continues, with 28 facilities in Chattogram already certified and more approvals underway. Gadani recorded a lackluster week, as tight ship supplies dampened ongoing recycling demand. This imbalance has supported stronger offers from recyclers. Looking to the future, ongoing tensions in the Middle East are prompting regional owners to consider recycling options, where Gadani is well-positioned due to its geographic proximity. At the same time, the market is gradually shifting towards environmentally friendly practices, with three yards now compliant with HKC standards. Domestic steel prices also rose, driven by concerns about possible supply disruptions and mills actively replenishing inventories. Türkiye saw a modest rebound in ship recycling activity, although the Eid holiday dampened momentum. Uncertainty over construction demand and a weak lira cast a shadow over the outlook, Intermodal concluded
Nikos Rousanoglou, Global Hellenic Shipping News
