Geopolitical Events Continue to Shape Ship Recycling Market

“We see geopolitical events take center stage across all shipping sectors (trading and recycling) for yet another week,” reports cash buyer GMS. It is expected to continue through Q3 and likely well into Q4.

GMS cites events such as the assassination of one of the founding members of Hezbollah in the heart of the Iranian capital city of Tehran, rockets fired into Israel and expected continued attacks on shipping by Houthis.

Added to that is national unrest in Bangladesh where several hundred deaths have been reported.

“India’s ongoing fallout from its general election and its recent budget announcement has left Alang recyclers increasingly on edge about the immediate economic future of their country, especially as Indian fundamentals continue to suffer for weeks on end,” says GMS. “Even Pakistani buyers, despite being atop the market rankings, seem to have nothing to show for it as for nearly four weeks now, there have been no fresh arrivals at Gadani’s waterfront.”

Local steel plate prices have remained volatile and the currencies of ship recycling nations have registered declines against the U.S. dollar, driving ship recycling sentiments further into the abyss of uncertainty. “As such, the slowdown in tonnage driven by developments in the Middle East, coupled with the onset of summer holidays in the shipping fraternity means increasingly little focus will be diverted to ship recycling efforts this month, especially as vessel prices and demand remain stunted.”

For week 31 of 2024, GMS demo rankings / pricings for the week are: