Global Ship Recycling Market: A Year in Review and 2024 Projections

Global Ship Recycling Market: A Year in Review and 2024 Projections
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The ship recycling market has undergone significant fluctuations in 2023, according to Best Oasis, a prominent cash buyer of ships. In its latest report, the company highlighted the dynamic nature of the market, with various regions witnessing fluctuating trends. Notable peaks in activity were followed by declines in different areas, while Bangladesh and Pakistan ratified the HKC convention. The EU modified the definition of waste, contemplating a reassessment of Indian yards, and the UAE introduced new ship recycling regulations. Anticipated advancements in 2024 are expected to build upon the current momentum of activities.

In the economic realm, the global economy in 2023 displayed resilience despite concerns of an impending recession due to rising inflation and commodity prices. Analysts predict a potential decline in growth in 2024, although the worst may be behind. Inflation, while decreasing, remains above the two percent goal set by most central banks globally. High-interest rates are expected to decline, impacting growth positively in the latter part of 2024. However, risks persist, including geopolitical tensions, the status of the US and Chinese economies, oil price volatility, growth disparities, global debt levels, and climate change costs.

Addressing recent events, Best Oasis reported a decline in recycling activities in India and Bangladesh due to decreased demand. Pakistan, on the other hand, experienced a slight rise in hope and demand, while Turkiye witnessed a decline in both imports and the local market.

In India, the ship recycling market faces a downturn marked by a lack of demand for scrap materials and vessels. The Steel Ministry committee rejected ship-recycling steel plates for TMT-bar production, citing a lack of detailed data and non-standardized offerings. India’s steel exports for FY2022-23 decreased by approximately 50%, with imports reaching a three-year high. The influx of low-cost steel from China and other nations has undercut Indian steel producers, with China being the largest supplier to India.

In Pakistan, markets are showing signs of activity as recyclers seek vessel purchases in anticipation of potential import restrictions under the next government, taking office on February 8th. Despite a surge in local steel prices negatively impacting construction and infrastructure, the provisional government decided to exclude Pakistan Steel Mills from the list of state-owned entities designated for privatization.

As the ship recycling market navigates these challenges and opportunities, stakeholders remain vigilant for further developments in 2024.

Sources: Hellenic Shipping News, Best Oasis.

Source Hellenic Shipping News Best Oasis

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