Ship Recycling Market Continues to Suffer

Indian sub-continent ship recycling markets remain decidedly dicey as both currencies and local steel plate prices in India and Bangladesh declined even further this week, reports cash buyer GMS.

“Vessel prices and demand take on a whole new meaning of industrywide suffering, especially with Turkey and Pakistani ship recycling markets still being remanded at the same resort over recent weeks.”

The political situation in the Middle East will also continue to restrict the supply of vessels for the immediate future / likely until Q4, 2024, says GMS, and this will invariably assist the ongoing and admirable performance of freight rates across key sectors, even in the face of traditional summer slowdowns.

Ongoing student riots in Bangladesh have increased in severity, resulting in a rising death toll and increasing mobile and internet outages across major cities that are now affecting key financial hubs and increasing the disability of this market to conduct regular business.

In India, all eyes remain peeled on the upcoming budget due to be announced July 23, which increasingly seems to be a negative one, especially given the recent performance of key domestic fundamentals, says GMS.

Should India’s budget turn out to be negative, shipowners and cash buyers with tonnage intended for Alang will find themselves chasing a market that’s snapped a stiletto, while simultaneously creating surprising news of high-priced fixtures that seem destined to lose money at the time of delivery. The focus therefore seems to be falling on an already damp Pakistani market, where prices, though below USD 500s/LDT, seem to be safe choice for non-HKC tonnage.

For week 29 of 2024, GMS demo rankings / pricings are: