Source Hellenic Shipping

ATHENS, Greece: The shipbroker recycling market showed a slightly downward trend last week. In its latest weekly report, Best Oasis (www.best-oasis.com), a leading cash buyer of ships said that “this week in the ship recycling industry, India saw a downward trend in the market, with prices dipping as the Diwali festival approaches, further dampening activity. 

 The slowdown is likely to persist until post-Diwali, when a potential recovery could emerge. In Bangladesh, the market remained stagnant, with no significant movement in prices or activity.

 Pakistan saw little change as well, aside from a price correction driven by increased inquiries for smaller vessels, though no deals were closed. Türkiye’s market stayed unchanged, reflecting the usual dormancy”.

 According to Best Oasis, “overall, the industry seems to be drifting with little wind in its sails, showing minimal change across the major markets China is preparing to introduce a USD 283 billion stimulus package to boost its economy, following a recent move by the central bank to lower the reserve requirement ratio (RRR) by 50 basis points, allowing more money to flow into the economy. 

 The country has been facing challenges like weak consumer spending, a real estate market downturn, and heavy debt in local governments, which have reduced demand for steel and metal products.

 As a result, Chinese steel producers have been exporting steel at lower prices, disrupting global markets and forcing other steelmakers to reduce their prices, which has not only led to financial losses but also shifted the dynamics of the steel industry. This new stimulus is expected to revive domestic demand, particularly in sectors like real estate and infrastructure, which may help curb cheap steel exports and bring balance back to the global steel market”, the company said.

 In a separate note, shipbroker Intermodal said that “the ship recycling market was mixed in the major regions last week. In India, activity remained subdued as the market slowed down ahead of the Diwali festival. Local steel prices fell and recyclers were cautious with no significant deals reported. 

 There is hope for a slight recovery after the festival as construction activity may pick up. In Pakistan the market remained stable but quiet with recyclers reluctant to make any new moves. 

 There was some renewed interest in smaller vessels, but overall the sector remains sluggish. Economic and political uncertainties continue to weigh on sentiment.

 Bangladesh remained under pressure with little improvement in steel demand or recycling activity. 

 Ongoing economic challenges and regulatory hurdles have kept recyclers on the sidelines and the market is expected to remain slow in the near term. In Turkey, there was some positive movement as steel and scrap prices improved. Recyclers showed more interest, driven by favorable market conditions, including anti-dumping measures.

 However, inflationary concerns remain and overall sentiment remains cautious. Overall, the ship recycling market remains quiet, with regional differences shaping trends and recyclers adopting a wait-and see approach”, the shipbroker concluded.