TShip recycling markets in Southeast Asia were mostly slower, mainly due to the Eid holiday. In its latest weekly report, the best oasis (www.best-oasis.com), one of the leading cash buyers of vessels, said that “the shipping industry and wider offshore market interest have remained focused on Poseidonia in Greece, a key platform for industry engagement, market insights and trade discussions. Relevant developments and key takeaways from the event will be consolidated and shared in the next weekly update.”
Source: Best Oasis
According to Best Oasis, “The Indian market remained largely unpredictable this week, with prices flat and overall sentiment remaining weak amid limited activity. Buyer appetite, however, remains strong, supported by a steady flow of vessels arriving in India, including a notable share of dark fleet tonnage, while improving steel availability has traders looking to tighten payment terms for recycling. Final prices remain the same whether recycling a standard vessel or a dark fleet unit; however, with dark fleet tonnage being acquired at lower prices. Cheaper, traditional recyclers find it increasingly difficult to recycle On the policy front, the government has issued the first ever credit note for ship recycling under the new scheme, confirming that the mechanism is now working, and is a positive step towards strengthening India’s competitiveness as a recycling destination in the long term. The Bangladesh market remains largely the same as last week, with conditions largely unchanged. However, momentum is expected to build over the course of this week as operations return to their rhythm.
Meanwhile, the report added, “With the market closed for the Eid holiday over the past week, sales were not concluded and conditions remained flat ahead of the break. Buyers remain keen to acquire new tonnage, although limited ship availability continues to restrict purchasing. On the regulatory front, Pakistan passed new ship recycling legislation this week to strengthen the Hong Kong Convention, introducing mandatory hazardous materials surveys and certification of ships arriving for recycling – a positive step for the long-term growth of the country’s recycling sector. Finally, it remained The Turkish market was relatively quiet over the past week, with limited activity, few notable transactions, and cautious sentiment keeping trading levels low. “Despite the current calm, visits and inspections at Turkish yards by several major container operators are providing some encouragement, raising hopes for larger recycling projects and a pick-up in activity in the future. However, the outlook remains challenging, as domestic politics, regional tensions and the ongoing depreciation of the lira maintain a high level of uncertainty about future prices and market direction.”
Source: Multimedia
In a separate report, ship broker Intermodal said: “Ship recycling markets had a slow week, with religious observances weighing on activity ahead of the approaching monsoon season. India’s ship recycling market attracted a measure of support from a firmer rupee, as markets priced in the prospect of a US-Iran understanding and the reopening of the Strait of Hormuz, which is crucial for Indian energy imports. Currency sentiment improved in Alang and coincided with higher domestic steel prices. However, activity remains subdued. Indian recycling sector is weak, with Indian recyclers remaining less competitive than their counterparts in the Indian subcontinent, limiting the arrival of new loads Despite the broader slowdown caused by Eid celebrations, sentiment in Bangladesh remained relatively positive, with market participants still showing interest in available candidates, and a rise in the local currency against the US dollar supported buying interest, although the domestic steel market remained closed during the holidays, encouraging buyers and on the macroeconomic front, the bank’s decision adds The central bank gradually injected $5 billion into the economy another supportive note, as policymakers seek to revive activity and return growth to a stronger position. In Gadani, the ship recycling market was halted due to Eid, while the local steel market was also closed, leaving steel prices unchanged next week, although market fundamentals now look broadly healthy “thanks to currency stability and steady buying appetite.” However, overall momentum remains constrained by the limited supply of available candidates. The Turkish market remained calm, with Eid activity continuing in the ship recycling and steel sectors, where sentiment remains cautious, as difficult economic conditions impact expectations.”
Nikos Rousanoglou, Global Hellenic Shipping News
