The ship demolition market continues to experience significant weaknesses across all major locations, with little change in sentiment and limited movement. Best Oasis, a prominent cash buyer of ships, reported ongoing downward trends in India, where safeguard measures have not managed to revive demand.
Financial pressures have put considerable strain on both mills and buyers. Similarly, the market in Bangladesh remains stagnant as stakeholders wait for the anticipated NOC decision, while in Pakistan, activity is minimal, focusing primarily on smaller vessels.
Buyers are quoting unworkable prices for larger ships, and compliance with HKC regulations is still uncertain. In Türkiye, the market shows no signs of improvement, as pricing remains stable and buyers exercise caution amid ongoing inflation and widening trade deficits.
Despite these challenges, India is making strides to enhance its maritime infrastructure and position in the global market. Maharashtra has approved a new policy aimed at boosting shipbuilding, repair, and recycling, which aligns with the Maritime India Vision 2030.
This initiative is part of the country’s broader objectives to become one of the top five shipbuilding nations and a leader in ship recycling by 2047. Amid global economic uncertainties, industries are increasingly feeling the pressure from inflation and disrupted trade flows.
S&P Global has indicated that ongoing US tariffs may contribute to a sharp economic slowdown, affecting multiple sectors, including technology and retail. Despite the struggles, optimistic movements in trade negotiations between India and the United States may provide some buffer against external economic turbulence.
Further complicating the landscape is the situation in Bangladesh, where limited availability of end-of-life vessels hampers the recycling market. Issues regarding import approval, coupled with the need for HKC compliance, are placing additional hurdles in front of shipyards.
In Pakistan, demand is low, primarily targeting smaller units. Tensions with India are escalating, especially regarding financial support from the IMF, which could further restrict liquidity and exacerbate challenges for local recycling sectors.
Turkish markets remain similarly constrained, with a cautious outlook from participants as they monitor broader economic trends.