The ship recycling market has picked up the pace, especially in some markets, like India, but still remains overall lacklustre. In its latest weekly report, a leading cash buyer of ships said that “ship recycling markets across South Asia and Türkiye showed steady trends this week, with India continuing to lead regional activity. Buyer sentiment in India remains positive, supported by stronger appetite and proactive purchasing, which is expected to keep the country ahead in securing available tonnage. Bangladesh stayed relatively quiet, with limited demand due to LC challenges and falling scrap prices impacting overall interest. Pakistan also saw muted activity, as operational yard constraints and stable prices kept market movement restricted.
In Türkiye, sentiment remained subdued amid holiday conditions, though a gradual pickup in buyer interest is emerging with more tonnage reportedly being fixed. On the global front, scrap supply continues to remain tight, leading to shortages across major recycling destinations. With limited availability, prices are expected to face upward pressure in the coming weeks, supporting stronger sentiment across all regions. Global crude steel production slipped by 1.3% year-on-year in July, totaling 150.1 million tonnes, according to the World Steel Association. The decline was mainly led by a 4% drop in China’s output, reflecting softer demand and cautious production strategies in the world’s largest steel market. The slowdown highlights ongoing challenges for the global steel industry amid weaker construction activity and muted industrial demand”, Best Oasis concluded.
In a separate report, shipbroker Intermodal said this week that “the global ship recycling market remained generally subdued over the past week, with stability in headline prices masking underlying caution among participants. Activity was muted across most regions, reflecting both seasonal slowdowns and broader economic and political uncertainties. Market players continue to watch global trade developments, steel fundamentals, and regional dynamics for clearer direction, but for now momentum is limited and sentiment remains fragile. India remained the relative bright spot, sustaining its recent momentum in vessel recycling even though local steel demand did not mirror this improvement. Sentiment there has turned more optimistic, helped by firmer buying interest and an upgrade in the country’s credit rating, with expectations of steady economic growth adding to confidence. Bangladesh, by contrast, continued to struggle.
Domestic buyers showed little appetite for tonnage, with attention confined mainly to larger ships at reduced levels. Political uncertainty remains the dominant drag, with an interim administration in place until national elections in 2026. Until a clearer political framework emerges, recyclers are expected to remain cautious. Pakistan’s market stayed largely unchanged following a shortened working week. Prices were broadly steady, but uncertainty lingers as persistent smuggling issues undermine local stability. The country’s sovereign credit outlook has improved slightly thanks to external financial support, though conditions remain fragile. Türkiye also showed no shift, with weak sentiment and minimal activity prevailing. Currency depreciation and stock market weakness continue to weigh on local confidence, and no immediate catalyst for recovery is in sight”, the shipbroker concluded.
Source: Hellenic Shipping News Worldwide
