TThe ship recycling market lacks available tonnage, despite strong buying interest. In its latest weekly report, the best oasis (www.best-oasis.com), a major cash buyer of vessels, said, “The Indian market remains reasonably stable; however, activity is limited due to the continued shortage of available recycling tonnage under current conditions. Domestic recyclers remain interested in sourcing units within targeted price levels, although they are unable to compete with the stronger prices offered in Bangladesh. Ongoing geopolitical tensions in the Middle East, coupled with restricted ship movement and the unresolved Strait situation, continue to impact supply and sentiment. Participants in “The market is cautious, with meaningful activity likely only if buyers are able to match price levels prevailing in the region.”
Source: Best Oasis
Best Oasis also said that in Bangladesh, “the market remains steady, with generally positive sentiment despite the slight decline in the local market. Buyers continue to show strong interest in acquiring new quantities, especially for immediate delivery. Demand fundamentals remain strong, supporting a relatively high market compared to regional competitors. Market participants are closely monitoring upcoming national budget developments and geopolitical conditions for further direction. In Pakistan, there is no significant change in market conditions, with continued inactivity and non-reporting of transactions.” Tensions The ongoing geopolitical and Middle East conflict is severely impacting import activity, particularly from the UAE, and market sentiment remains uncertain and highly volatile, with price indicators fluctuating daily, awaiting further clarity and stability before activity resumes. Finally, the Turkish market is largely unchanged from last week, with price levels remaining steady, limiting new market activity and opportunities, although overall movement remains weak with no significant change in fundamentals. The company’s report concluded that the market trend is expected to remain stable unless New supplies appear.
Meanwhile, in a separate weekly report, shipbroker Intermodal said, “India and Pakistan continued to underperform last week, while Bangladesh maintained a firmer footing. Geopolitical concerns and tonnage supply constraints continued to weigh on sentiment, 5 weeks ahead of the start of the monsoon season. India’s ship recycling market remained flat over the week, with activity subdued amid expectation of additional candidates. Prices remained steady within established ranges.” But transactions were constrained by a persistent shortage of available resources. Meanwhile, the ongoing turmoil in the Strait of Hormuz continued to weigh on sentiment, and the government sought to mitigate LPG supply risks through increased imports from the US and an agreement with Iran that allows eight ships to transit the strait and offload LPG cargoes to India. Against this backdrop, the steel market remains sideways, lacking clear directional drivers at present.
Source: Multimedia
The Gadani position remains dormant, with no transactions completed as geopolitical uncertainty in the Middle East continues to weigh on sentiment. Heading into the pre-monsoon period, buyers are largely adopting a wait-and-see approach, with limited load trading and participants looking for clearer signals on underlying fundamentals. The main challenge is whether any deals can be concluded within the tight time frame before the monsoon, which is now just 5 weeks away. The domestic steel market is facing headwinds, as weak demand for finished steel products leads to price declines. Bangladesh’s ship recycling sector maintains its strong trend, supported by strong demand and improved financing conditions. Faster approvals of letters of credit from the central bank have lifted sentiment, allowing more transactions to go ahead. In Chattogram, buyers continue to show strong interest in express tonnage, but vessel availability remains limited. Compared to its counterparts in the Indian subcontinent, Bangladesh is in the strongest position, however more deals could have been concluded if more candidates were available. In Türkiye, the market appears supply-constrained rather than demand-driven, with stable sentiment masking weak activity. Intermodal concluded that the arrival of new ships will be key to any future recovery.
Nikos Rousanoglou, Global Hellenic Shipping News
