The ship recycling market is experiencing a lack of interest and activity, with buyers remaining cautious amid ongoing economic uncertainties. According to Best Oasis, a prominent cash buyer of ships, the market is characterized by selective buying, particularly in India, where demand remains weak and inconsistent. Discussions around potential anti-dumping duties have yet to produce tangible effects, contributing to the stagnation.
In Bangladesh, buyers are primarily focused on smaller vessels to maintain yard operations, while larger vessels are facing challenges due to foreign exchange constraints. This has created a price disparity of USD 30-40 per ton between small and large vessels. In contrast, Pakistan has seen some activity, with local sales supporting shipyards and buyers preparing for green recycling initiatives.
Meanwhile, Türkiye reported a slight increase in imports, but the overall market dynamics remain steady. Best Oasis emphasized the need for a robust external catalyst to break the current cycle of stagnation. Reports suggest that U.S. considerations to lift sanctions on Russia could significantly impact the global economy, potentially altering energy markets and affecting investments in alternative energy sources.
Such geopolitical shifts might also complicate relations with European allies, creating uncertainty in global trade. Shipbroker Intermodal noted that major ship recycling destinations remained lackluster, though Pakistan’s market showed signs of revival after a period of inactivity. India faced pressure from U.S. tariffs on steel imports, impacting its steel exporters and recycling activity.
Additionally, financial challenges in Bangladesh due to temporary remittance increases have hindered purchasing power, while local political instability continues to affect the economic landscape. Overall, while there are slight signs of improvement in certain regions, the ship recycling sector remains sluggish, with minimal movements in pricing and demand. The outlook for the market will largely depend on broader economic and political advancements.