Pace Still Slow Across Ship Recycling Markets
The ship recycling market lacked momentum during the past week. In its latest weekly report, Best Oasis (www.best-oasis.com), a leading cash buyer of ships said that “ship recycling markets across South Asia and Türkiye continue to face a lack of momentum, with sentiment soft and activity largely stagnant. In India, conditions remain flat as demand shows no meaningful improvement. Monsoon rains are gradually impacting yard operations, adding further drag to already quiet market dynamics. In Bangladesh, the market remains in a state of limbo, mirroring last week’s inactivity. Buyers remain cautious, with HKCaligned capacity limited and no fresh interest emerging. Indicative pricing is holding, but actual deals remain sparse. Pakistan continues to face structural hurdles. Although buyer interest exists, most shipowners are hesitant to commit, with uncertainty over HKC compliance and currency weakness weighing on the market. Isolated sales are not indicative of broader sentiment. Türkiye shows no change in sentiment or price levels. Steel mills are running at low capacity, and while more tonnage is being offered, it has yet to impact pricing significantly”.
Source: Best Oasis
“Across regions, recyclers remain cautious, with no immediate signs of improvement. OPEC’s newly released outlook projects global oil demand will rise steadily to 123 million barrels per day by 2050, driven by industrial growth and rising consumption in non-OECD countries. While this signals a long-term reliance on oil and sustained demand for tankers and offshore assets, the near-term impact on the recycling market is limited. Recycling activity continues to be influenced more by local fundamentals, compliance hurdles, and weak buying interest than by distant demand forecasts. Still, over time, this trend could lead to higher vessel retention now and increased recycling volumes in later years as fleets age”, Best Oasis concluded.
Source: Intermodal
“Similarly, Pakistan’s ship recycling sector remains in limbo as it navigates the transition to HKC standards. With no fully certified yards currently operational, only a few facilities exceeding 60% of compliance related upgrades have been granted temporary clearance through provisional DASR approvals. This interim arrangement permits limited recycling activities but leaves the market shrouded in uncertainty. Consequently, shipowners are hesitant to commit tonnage, resulting in declined market activity. The sector awaits successful deliveries under the new regulations to build confidence and encourage wider participation. The Turkish market continues to mirror the subdued tone of previous weeks, with constrained buying interest. However, a steady rise in tonnage candidates provides a glimmer of optimism. Turkish Lira weakened versus the Dollar last week. The steel market is affected by poor demand, however, sales have not decreased significantly”, Intermodal concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
