TShip recycling markets have been under pressure over the past week, although there are signs of slight improvement as well. In its latest weekly report, the best oasis (www.best-oasis.comA leading cash buyer of ships said, “The Indian market witnessed downward pressure this week, primarily driven by the sharp depreciation of the Indian rupee against the US dollar, which pushed down domestic price levels. Despite weak fundamentals, ship recycling sentiment remains cautiously positive, with recyclers showing resilience in the near-term improvement outlook. A severe shortage of inbound ships continues to weigh on overall market momentum, limiting transaction activity. Market participants remain selective, with activity largely dependent on on price consensus and currency stability.”
Source: Best Oasis
Meanwhile, in Bangladesh, the Chattogram market was “severely disrupted by heavy rains and severe flooding, effectively paralyzing daily operations. Recycling activities have slowed dramatically, with some yards halting operations entirely amid adverse conditions. Highly priced ship offers are struggling to find buyers, as weak steel sheet sales continue to dampen overall sentiment. Despite the current challenges, a few upbeat crushers remain active, showing willingness to secure ships for delivery before the national budget.” Coming.
Market participants are closely monitoring weather conditions and economic developments for signs of recovery. In Pakistan, Gadani Market saw no significant change compared to the previous week, with conditions remaining largely unchanged. Activity levels remain subdued, with limited buyer participation and no notable transactions reported. Sentiment remains cautious, as recyclers prefer to remain on the sidelines amid ongoing uncertainty. Finally, the Turkish recycling market showed signs of slight decline over the past week, reflecting a moderation in overall sentiment.
Many Aliaga recycling yards are operating at or near full capacity, reducing the urgency for additional load and limiting bidding activity. The continued weakness of the Turkish lira has contributed to a more cautious and risk-aware approach among recyclers. While a softer currency could have enhanced competitiveness, volatility has instead encouraged restraint in purchasing decisions. Arenas with available capacity may still show stronger interest and adopt a more competitive stance; However, such cases remain limited.”
Source: Multimedia
Meanwhile, in a separate report, shipbroker Intermodal said: “The backdrop across major ship recycling hubs last week remained broadly flat, with Bangladesh retaining the lead and Pakistan showing encouraging signs of improvement. Conditions at Alang remained largely unchanged, with few reports. An underlying desire to recycle candidates remains persistent among buyers, but a persistent shortage of available tonnage continues to hamper deal flow. Adding to the pressure is a falling Indian rupee, which is partly due to Disturbances in energy flows. Against this backdrop, lower domestic steel prices have reinforced the prevailing cautious tone in the recycling sector, with Gadani witnessing an improvement in sentiment during the week, supported by strong domestic steel dynamics. Rising demand for domestic steel has supported plate prices, which in turn has improved recycling economics adding another competitive advantage for buyers. However, rising inflation continues to push the central bank to tighten policy by increasing interest rates. Bangladesh maintains its position at the top of the regional table and enters the pre-monsoon period. With its fundamentals broadly sound, although supply-side headwinds persist and it remains unclear whether meaningful transaction volumes can be achieved before the monsoon arrives, the Turkish ship recycling market remains firm but constrained, with prices weak compared to activity in the Indian subcontinent. Concerns about rising inflation and a downward revision to the IMF’s growth forecasts add another note of caution.
Nikos Rousanoglou, Global Hellenic Shipping News
