THe sent the recycling market to remain less excited for the past week, continuing the same trend. In his latest weekly report, Best Oasis (www.best-oasis.com), a leading ship money buyer said that “the market remains calm, marked by selective purchases and caution. India is still stagnant with weak demand and inconsistent buyer interest. Discussions about anti-dumping tasks occurred, but they have not had a real impact. In Bangladesh, buyers look for smaller ships to keep the yard running while the larger ship struggles due to foreign currency constraints, expanding the price gap between small and large ships with USD 30-40 per ton. Pakistan sees several activities with local sales to increase the yard and buyers who prepare green recycling. Türkiye sees a small increase in imports but the overall market remains the same. Without changes in the horizon, buyers are careful, and financial constraints still affect the market “.
Source: Best Oasis
The best Oasis adds that “strong external drivers are needed to break the stagnation cycle and selective purchases. The report shows that US administration is pondering the appointment of Russian sanctions as part of diplomatic transactions regarding Ukraine. In this case it happens, the global economy will be affected on a large way. Therefore, the energy market will change significantly because Russian oil and gas exports will increase, resulting in price declines worldwide. At the same time, the economy and market will be disrupted and investment will slow down alternative energy sources such as wind and solar power. From a geo-political perspective, this sanction will worsen US relations with European allies that support sanctions, adding volatility in global trade. There will also be headaches due to differences in sanctions policies for businesses that operate outside Europe and the US, which will increase operational costs. The impact may not be seen directly, but changes in trade dynamics can affect the recycling of the ship, thus affecting the volume for the scrapping of ships that will provide a balance tip for global steel prices “.
In his latest weekly report, Shipbroker Intermodal said that “The purpose of recycling the main ship remains less excited last week, in the midst of limited activities. In a positive note, the Pakistani market sees some actions, after being inactive. In India, the steel market has experienced slight increase in demand, but uncertainty continues because of the US 25% tariff on steel imports. This puts pressure on Indian steel exporters, while the threat of the entry of cheap steel imports remains. Meanwhile, the ship recycling activity remains calm, with a number of available candidates, which can cause the price increase offered simply. The buyer approaches the market carefully. Overall, market conditions remain slow, with minimal movements in price and demand “.
Source: Intermodal
“In Bangladesh, while the entry of money transfers has supported the country’s reserves, financial uncertainty is fixed because this increase has proven to be temporary. Reserves have decreased significantly this week due to debt payments. The scarcity of foreign currencies has an impact on the purchasing power of local buyers, which causes a shift in demand to smaller ships. Although some activities in the local yard from previous purchases, market conditions remain weak. Economic challenges and political instability remains, triggered by riots from political groups led by students. Unemployment and inflation continue to affect the economy. Prospects for the ship recycling sector are expected to increase together with progress in the economic and political landscape. Taka Bangladesh remains stable against the US dollar this week. In Pakistan, the market has shown several signs of activity, following a long stagnation period. This uptick is mainly related to the selective movement of the buyer, in preparation for compliance with the regulations of the Hong Kong Convention. In addition, the condition of the Indian market is currently benefiting the Gadani shipyard. However, the economic environment that challenges the country affects the ship’s recycling sector, due to obstacles in the LC and bank restrictions prevent buyers from securing ships, despite a slight increase in demand. While the steel market experienced a slowdown during the Ramadan period, this did not significantly affect the ship recycling market. Pakistani rupees weakened slightly against the US dollar week-in-week. In Türkiye, the ship recycling market remains flat, without important changes, regardless of increasing smooth import activities. In the economic field, the central bank decreased interest rates to 42.5% from 45%, while inflation showed signs of easing “, the intermodal concluded.
Nikos Roussanoglou, Hellenic Shipping News worldwide
