TThe ship recycling market was still weak over the past week. In its latest weekly report, the best oasis (www.best-oasis.com“The Indian market has softened this week, with sentiment under pressure due to a stronger exchange rate and a more cautious economic outlook. Buyers remain less inclined to commit to current levels, as higher daily costs, slower construction activity and weak steel demand continue to weigh on overall buying appetite. Specialized vessels are still expected to remain attractive to Indian recyclers, although broader demand is likely to remain selective in the near term,” a major cash buyer of vessels said.
Source: Best Oasis
Best Oasis added, “The Bangladesh market remains broadly similar to last week, with overall sentiment stable but activity slowing due to persistent rain. Sales activity has declined, while many yards are currently supplied, making buyers less willing to acquire new tonnage at current price levels. Buying interest is expected to remain cautious in the short term until weather conditions improve and yard demand becomes more active. The Pakistani market remained largely unchanged this week, with sentiment remaining stable. Supply constraints continue to Supporting 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 supply 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 weak. The company reports “prompt delivery and cautious approach across the market Overall, market participants continue to monitor currency movements and yard capacity developments, with sentiment expected to remain firm but cautious in the near term.”
Meanwhile, in a separate report, ship broker Intermodal said: “Ship recycling markets in the Indian subcontinent saw a week of limited activity, amid inflationary pressures and a dearth of candidates. Alang saw a slow week, with buying interest declining as inflationary pressures weighed on the broader economy and activity stalled. Steel market conditions deteriorated further, with prices falling amid weak demand fundamentals. The Indian rupee slid to historic lows, driven by higher gold imports. A widening trade deficit and rising energy costs led to The outlook darkened, reinforcing expectations of continued weakness in the recycling and steel sectors and in Bangladesh, the market remained weak, broadly unchanged from the previous week, with availability of suitable candidates remaining limited, coupled with rising fueling costs and cautious buyer engagement, weighing on sentiment, restricting transaction flow and keeping public participation low.
Source: Multimedia
On a more positive note, improvements in the letters of credit system have shortened financing timelines and supported smoother trade execution. The domestic steel market also remained dormant, with minimal transactions. Weak demand for finished steel products continues to have a significant impact on overall market conditions. In Gadani, the sector has remained resilient despite the geopolitical backdrop of rising energy prices. However, fundamental stability appears to be supported more by supply-side constraints than by strength in demand, reflecting a lower pool of available candidates and lower flows of imported supplies. On the macro side, inflation rose in April to 10.9% from 7.3%, driven by transportation and housing costs, while the central bank’s first interest rate hike in three years appears to be providing supportive signals for the FX market. The Turkish market remains constrained by the ongoing depreciation of the currency against the dollar, inflationary pressures and macro-level uncertainty. However, prices are supported by limited tonnage availability and strong recycling demand.
Nikos Rousanoglou, Global Hellenic Shipping News
