TThe ship recycling market has been relatively quiet over the past week. In its latest weekly report, the best oasis (www.best-oasis.com), a major cash buyer of ships, said that “the EU Environmental Crimes Directive (Directive (EU) 2024/1203) continues to attract significant interest within the recycling sector following the official listing of illegal ship recycling as a criminal offence. The Directive is expected to increase scrutiny of compliance at recycling destinations and further reinforce the importance of environmentally compliant recycling practices across the industry.”
Source: Best Oasis
Best Oasis noted, “The Indian market declined further this week, with domestic prices falling while the US dollar continued to strengthen, keeping overall sentiment under pressure. Despite the weak market, demand from buyers remains healthy due to limited availability of recycling candidates. For non-sanctioned vessels, especially non-dark fleet-related units, there is still a good chance of securing firm buyer interest. The recycling yard has reportedly secured US approval to recycle sanctioned vessels, and we have also submitted our application, which is progressing from “We remain hopeful of receiving the necessary approval soon, and with the joint venture between ASRY and Priya Blue in Bahrain, the company has already received its first vessel, a barge, for recycling. Please keep us informed of any suitable recycling opportunities for Bahrain. There are also discussions in the market that authorities may consider requiring vessels to be Indian flagged before being delivered for recycling, but the industry remains concerned that such a move may discourage owners from recycling in India and diverting their cargo towards competing destinations.”
“Bangladesh buyers remain keen to take up cargo, despite prices falling from previous levels,” the company added. Market participants are closely monitoring expectations of increased import duties on scrap vessels, expected during the first week of June, leading to a more cautious approach from buyers on pricing levels. Overall sentiment remains firm, although buyers are holding conservative numbers until further clarity emerges regarding the proposed duty adjustments. The Pakistani market remained largely unchanged this week, with sentiment continuing Steady Supply constraints continue to support the market, with limited scrap, HMS and cut materials being received from the Middle East, while fresh vessel availability remains limited overall, shortages of imported materials and limited tonnage supplies keep price sentiment firm, although buying activity remains selective Finally, Turkey’s recycling market remains relatively stable this week, although sentiment continues to be affected by the depreciation of the Turkish lira, which has limited buying appetite and kept fresh tonnage activity limited. “Weakened with limited availability for immediate delivery and a cautious approach across the overall market, market participants continue to monitor currency movements and capacity developments, with sentiment expected to remain firm but cautious in the near term.”
Source: Multimedia
Meanwhile, in a separate report this week, shipbroker Intermodal said: “It has been a relatively quiet week for major ship recycling hubs, with some regional variations across the Indian subcontinent, while activity is expected to slow in light of Eid celebrations. The Indian recycling market saw demand conditions deteriorate last week, with resilience supported only by a limited pool of available candidates. Sentiment was further destabilized by rumors that Indian authorities may require ships to be re-flagged under the Indian flag before demolition, a move by That would deter shipowners from directing cargo towards Indian ports. Adding to the weak outlook, the domestic steel market softened, with falling prices failing to provide tangible support and leaving the recycling industry with little room to improve their bids broadly unchanged from the previous week, supported by a stable currency and lower flows of alternative scrap and steel materials. Pakistan’s stability, however, appears to be driven more by weak supply than anything else. A clear improvement in end-user demand, and the domestic steel market has remained steady, although some pressures in scrap were reported. Domestic, while renewed inflows of Iranian steel products may add competition on the supply side Bangladesh maintained a cautiously positive tone, amid buying interest and an improved letter of credit process has supported implementation, but buyers remain cautious ahead of the national budget, with expectations focused on extensive steel infrastructure measures as well as possible policy changes related to higher import duties on recycling filters, as weak indicators for plates and scrap Eid al-Adha are expected to slow activity in both Pakistan and Bangladesh. The Turkish sector was steady last week, although it was affected by the continued decline in the value of the lira and with high inflation, which eroded purchasing power.
Nikos Rousanoglou, Global Hellenic Shipping News
