The ship recycling market faced significant challenges last week due to a persistent shortage of tonnage. According to Best Oasis, a leading cash buyer of ships, key recycling destinations such as India, Bangladesh, Pakistan, and Turkey experienced various disruptions.
In India, the ongoing monsoon season disrupted operations, with recyclers awaiting the national budget announcement for potential relief. Bangladesh faced stagnant conditions due to difficulties with letters of credit and unrest from protests. The Pakistani market remained inactive, dependent on increased scrap imports, while Turkey saw stability but low activity.
An official letter from GMB announced a European Parliament delegation’s visit to Alang in early 2025 to audit compliance with international environmental and safety standards. This visit aims to assess practices and conditions in Indian ship recycling yards.
Intermodal reported that high freight rates continued to limit container availability for recycling, further depressing the market. India’s steel prices declined amid weak demand, while Bangladesh saw mixed conditions with minor local price improvements offset by scrap price reductions. In Pakistan, new import taxes and monsoon impacts slowed demand, despite some economic stability from a recent IMF loan. Turkey faced low activity levels and currency challenges despite stable steel prices.
Overall, the outlook for the demolition market remains cautious, with limited short-term tonnage supply expected. Stakeholders are closely watching upcoming economic policies and budget announcements, particularly in India.
Sources: Hellenic Shipping News, Best-Oasis
