India’s Ship Recycling Deals Suggest Market Recovery

Cash buyer GMS reports that the ongoing complications experienced in the Indian sub-continent ship recycling markets have shown few signs of dissipating this week.

The company says the lack of vessels and financing approvals in Bangladesh and Pakistan has seen market prices reach new lows with each concurrent sale into the sub-continent destinations.

“Notwithstanding, despite being moderately placed in the market rankings, India remains a beacon of hope amidst a dire 2023 recycling landscape, especially as a number of impressive deals were concluded here this week, perhaps suggesting that better days may well lie ahead for this market.”

Some owners and cash buyers are choosing to hold on to their unsold tonnage due to the new low in prices - consistently below USD 500/LT LDT.

Once the constant rains pass, the industry may see production restart and the backlog of material at the yards starts to shift again.

Turkey remains quiet as ever, with virtually no movement reported over recent weeks, says GMS.

Following the glut of dry bulk sales over the summer months, container ships have started to enter the market, especially as rates across these two sectors struggle to post any significant profit above running costs. As such, if prices do begin to pick up from these current lows and financing issues start to ease up in both Pakistan and Bangladesh, the industry can expect a busier fourth quarter.

For week 34 of 2023, GMS demo rankings / pricing for the week are: