GEopolitican uncertainty has further exacerbated overall submission activities in the ship recycling market. In its latest weekly report, Best Oasis (www.best-oasis.com), a leading cash buyer said that “This week, the ship’s recycling market remains in a state of stagnation in all main objectives, without significant development that affects prices or demand. India remains under pressure because the strengthening of the US dollar against Rupee adds further tension, maintaining market sentiment locked in repeated inactive cycles. Bangladesh did not see a shift in market conditions, with prices adjusted according to local trends but failed to produce fresh interest. The Pakistani market follows his close and quiet pattern, not showing signs of new changes or sentiments. Meanwhile, Türkiye reflects last week’s trend, maintaining a solid but smooth view “.
Source: Best Oasis
According to Best Oasis, “Overall, the market seems to be in a holding pattern, waiting for the catalyst to break the cycle. Without a big shift in the horizon, all eyes remain on external factors that can turn back momentum. Global raw steel production in January 2025 decreased 4.4% compared to the same month in the previous year, reaching around 151.4 million tons, as reported by the World Steel Association. Chinese steel output saw an important decrease of 5.6%, while India continued the upward track with an increase of 6.8%. The United States recorded a simple increase of 1.2%, while Japanese production was contracted by 6.6%. Among different areas, the Middle East experienced the sharpest decline at 15.3%, while Russia and other CIS countries, including Ukraine, posted a slight growth of 1.4%. Although some countries reported an increase, the overall global steel output declined, mostly driven by reduced production in China and weaker manufacturing activities in various regions, “he concluded.
In a separate report, the Intemodal ship said that “March had begun with a minimum change from February, marked by calm activities and careful market sentiment, greatly influenced by the ongoing geopolitical uncertainty. In Bangladesh, although there are several indications of gradual recovery, the economy continues to experience difficulties, including rising living costs, inadequate government spending, high unemployment and weak investment activities. In the political front, the students who led the protest which resulted in the abolition of PM Sheikh Hasina, formed a new political party that planned to participate in the expected elections that were expected in the year. Domestic steel demand remains due to a decrease in construction activities and lack of government projects, while the price of local steel plates decreases slightly. In the ship recycling sector, market activity is expected to remain limited in the next 2 weeks, influenced by Ramadan, the availability and uncertainty of the ship is limited.
Source: Intermodal
At the front of the regulation, while there is a delay, the improvement work has begun to harmonize Yard with HKC, starting to take effect this summer. This is necessary for Yard to get SOC certification from an accredited classification community, ensuring they meet the required standards to continue operations outside the second quarter of 2025. In India, the economy seems to be on the track, supported by increased public and private expenditure. The GDP growth rate has exceeded 6% and the new budget, which includes tax reduction for medium and low -income households, is expected to further improve economic conditions and confidence. However, the ship recycling market remains stagnant, with a slight change from last week due to lack of available tonnage and uncertainty coming from the developing US tariff situation. In addition, the weakening of the Indian rupees of the US dollar is eroding the buyer’s purchasing power. In a positive note, the steel market has shown signs of improvement, driven by stronger demand. In Pakistan, focus on recycling Gadani is aligning Yard with HKC regulations. At present, 11 Yard is progressing with the renewal and action needed, with 6 of them close to compliance with HKC requirements. In addition, there is a slight change in the market, with the remaining activities. However, Pakistani rupees remain stable and there are some interest from buyers to negotiate on the ship’s recycling candidates, especially with smaller sizes, “the ship concluded
Nikos Roussanoglou, Hellenic Shipping News worldwide
