GMS: Ship Recycling Market Subdued

The ship recycling market has so far been subdued in September, as expected, reports cash buyer GMS.

Macro factors affecting the market include the situation in the Middle East, Houthi attacks on passing vessels and tensions caused by the repositioning of navies in response to ISIS fighters targeting U.S. bases.

“The start of September saw the industry still witness the inescapable decline that is India’s ship recycling sector today, one that continues to show no signs of it slowing since early June,” says GMS. “Any expectations that a historical Q4 resurgence is likely to repeat itself can be fully laid to rest as this does not seem to be an exit on India’s 2024 highway.”

Sub-continent markets appear mired in gloom amidst the ongoing import of cheaper Chinese steel into India and Pakistan. This has been undercutting local inventories there and causing steel plate prices to fall.

Meanwhile, political strife and disastrous flooding have characterized the unfolding crises in Bangladesh.

“For sub-continent recyclers overall, there have been very few recycling candidates available to test where currently falling levels stand, as they have lost about USD 65/LDT since the peaks seen earlier this year. As such, offers below USD 500/LDT are being regularly tabled on a handy majority of the vessels that are tentatively testing the recycling waters.

“Freight markets meanwhile remain a double-edged sword in that they remain firm across the board keeping vessels employed longer.”

Turkey matches its sub-continent partners with major price declines of its own approaching USD 300/MT.

For week 36 of 2024, GMS demo rankings / pricings are: