Tensions in the Middle East have significantly impacted ship recycling activities across various regions. According to Best Oasis, a prominent cash buyer of ships, the ship recycling market is experiencing subdued conditions. In India, buyers are hesitant to act, preferring to wait until prices meet their expectations.
Bangladesh is largely inactive due to the Eid holidays and a growing focus on the imminent enforcement of the Hong Kong Convention (HKC). Meanwhile, Pakistan shows a slightly greater interest in ship recycling; however, currency issues are complicating deals and delaying deliveries. In Turkey, the market remains flat, with buyers cautious due to broader economic concerns.
Overall, the ship recycling sector is in a holding pattern, awaiting either better pricing or clearer regulatory guidance. Global shipping remains tense, particularly as Israel engages Iranian targets, raising risk levels in the region. While the Strait of Hormuz remains operational, Iran’s history of tanker attacks has prompted some vessels to reroute.
The United Kingdom Maritime Trade Operations (UKMTO) is advising increased vigilance. Any action by Iran to disrupt oil flows could result in significant increases in crude oil prices. Meanwhile, the World Bank has downgraded its global growth forecast for 2025, highlighting ongoing trade tensions and inflation concerns that affect major economies.
In the ship recycling sector, the response to the Eid holidays has created a sluggish market atmosphere. Intermodal’s reports indicate that India faces challenges due to declining local steel prices, worsened by increased U.S. tariffs on steel imports. In Bangladesh, operations in Chattogram have largely come to a halt due to the holidays and compliance preparations for the HKC.
Meanwhile, Pakistan’s sector struggles with uncertainty regarding HKC compliance, lacking certified yards and facing foreign exchange issues that further dampen market activity. Turkish ship recycling remains quiet, driven by economic uncertainty and cautious buyer sentiment.