Signs of Recovery for Ship Recyclers in 2024
After what has been an overall miserable 2023 in the ship-recycling industry and even worse six-month tail end, 2024 seems to be off with just a little more hope and a chance at recovery as positive signs seem to permeate through the markets, says cash buyer GMS.
Critical factors such as declining currency values (except in India), flatlining / declining local steel plate prices, and the dreadful (and ongoing) lack of funding on fresh acquisitions (in Bangladesh and Pakistan), all came together over the course of the summer / monsoon months of 2023. All of the major ship recycling destinations were swept up in declining vessel prices, a plummeting supply of fresh units, currency depreciations and rampant global inflation.
Additionally, the lack of financing available to ship recyclers in both Bangladesh and Pakistan through much of 2023 has further ensured that a minimal number of deals would be concluded into these markets.
“While the rampant flat-lining of local steel plate prices in Bangladesh and Pakistan was ensued by the ever-present volatility that devoured much of 2023, early 2024 (especially until May) will likely be a similarly quieter period, as elections are expected across various sub-continent locations,” says GMS. Bangladesh and India are not expecting any change in their leadership or drastic changes to the ongoing status quo, so this may / may not be the greatest of news needed to stimulate their respective economies and drive some much-needed growth for the rest of 2024.
For week 1 of 2024, GMS demo rankings / pricing are: