Ship Recycling Market Remains Slumped

The lackluster end to the year in subcontinent recycling markets continues for another week as disappointed owners and cash buyers face selling their inventory into markets where prices have slumped, reports cash buyer GMS.

Several dry bulk sales were below USD 500/LT LDT into India in the lowest confirmed deals for several months.

Steel prices have declined in India by almost 10% in a shock to many, particularly as international steel prices have pushed on to an impressive extent over the last month. “As such the offering and buying has been extremely tentative of late, with end buyers preferring to wait and watch market developments before offering firm on tonnage again.”

Bangladesh and Pakistan meanwhile continue to face line of credit / financing difficulties, so minimal deals have been confirmed to those markets. Chittagong may stay inert right up until the elections in mid-January next year, with many hoping a change in regime brings some stimulus to the local economy and international exports. “It is therefore encouraging to see dry bulk charter markets showing signs of life, and this is subsequently depriving recycling locations of tonnage at a time of considerable malaise there.”

The UAE issued a new law which will enter into force in March, 2024, that limits any UAE flagged or any foreign flagged vessels coming from the UAE to Hong Kong Convention recycling only – along with some contradictory wording prohibiting ‘beaching’. Further clarifications are needed, however, to understand the full extent of the restrictions, says GMS.

For week 49 of 2023, GMS demo rankings / pricing for the week are: