The ship recycling market is currently facing a period of low activity, marked by weak pricing, damp demand, and subdued sentiment across the Indian sub-continent, Global Marketing Systems (GMS) said in its weekly market report.
GMS, a large buyer of ships and offshore assets for recycling, reported that sales have almost come to a halt, with prices falling by over USD 100/LDT since the peak levels of 2024, now hovering below USD 500/LDT.
Bangladesh and Pakistan remain the weakest performers due to economic challenges, limited availability of letters of credit (L/Cs), and a lack of interest in negotiations, even when opportunities arise.
Meanwhile, India continues to handle a series of HKC-compliant sales, though prices for sought-after container vessels have dipped below the USD 500/LDT mark.
Turkey is also struggling with weak supply, poor sentiment, and ongoing concerns over the Lira and steel prices.
India’s issues are compounded by tariffs on cheaper Chinese steel, which has failed to stabilize domestic steel prices.
Bangladesh’s political uncertainty under an interim government continues to affect the resale of recycled steel, while Pakistan and India have refrained from buying, wary of potential further price drops.
The freight markets, performing reasonably well, have led to limited supply for recycling, with projections suggesting this trend may extend into early 2025. This reduced activity might allow markets in the Indian sub-continent to stabilize, GMS said, potentially preparing for an expected increase in supply next year.
