TThe ship recycling market remains trapped in an adverse environment. In its latest weekly report, the best oasis (www.best-oasis.com). Interested parties are willing to pay reasonable levels, even if profitability remains questionable.”
Source: Best Oasis
Best Oasis added: “Activity in the Bangladesh ship recycling market improved this week, with buyers showing increased urgency to secure vessels ahead of the upcoming Budget and especially targeting units that can be delivered before the new measures come into effect. Prices remained steady, although the local market did not move fully in line with the stronger levels being offered by buyers, reflecting expectations that market conditions may become more favorable in the near term. Sentiment in the region was also supported by a newly elected business-friendly political environment, which added further “Positivity.” The Pakistani ship recycling market remained largely unchanged from the previous week, with sentiment showing little movement overall, and market activity was limited as the Eid holiday continued over the past few days, with most participants staying away from the market during this period. However, import levels have risen by about $8 over the past week, providing a somewhat more stable fundamental indicator for the market. With participants expected to return after the holiday, there is potential for improved activity and morale next week.
Meanwhile, in a separate report, ship broker Intermodal said: “Ship recycling markets in the Indian subcontinent remained weak, with holiday disruptions, geopolitical uncertainty and currency pressures limiting activity despite some signs of lurking opportunities. In Bangladesh, market momentum stalled despite the country retaining the most competitive pricing levels in the region. Eid celebrations effectively halted trade discussions, with minimal port activity and no significant number of ship arrivals. Meanwhile, the local currency continues to decline against the dollar.” “The American represents a structural challenge for us.” Recyclers, as their purchases are typically denominated in dollars while revenues are generated domestically, steel prices showed little flatness, mainly due to concerns about supply disruptions rather than improving consumption fundamentals, with regional conflicts continuing to hamper trade flows.
Source: Multimedia
In India, sentiment in Alang remained cautious as recyclers faced global and domestic pressures. Energy supply concerns linked to tensions in the Middle East and tight oversight of Russia’s oil trade have increased cost uncertainty, while a weaker currency has further dampened buying appetite. Volatility in domestic steel prices has also complicated pricing strategies for recyclers. However, India’s strong position in environmentally compatible recycling infrastructure continues to attract interest from owners looking for responsible disposal options, although actual transactions remain limited and ship supplies remain weak. Meanwhile, Pakistan entered the holiday period with improved confidence after a long period of contraction. Economic stability, especially in the currency and steel markets, has provided some reassurance to local buyers. In addition, regional trade disruptions may result in some ships being redirected towards Gadani due to its location and competitive position. Advances in environmental certification also enhance Pakistan’s attractiveness, although political tensions linked to the broader conflict remain a factor that international stakeholders continue to monitor, the shipbroker concluded.
Nikos Rousanoglou, Global Hellenic Shipping News
