GMS: Ship Recycling Activity Minimal

It has been another tentative time in the global ship recycling markets as overall this week, reports cash buyer GMS, as sale and purchase activity and local arrivals / deliveries reported minimal movements at the various waterfronts.

Indian sub-continent ship recyclers are approaching the monsoon season with a ‘wait-&-watch’ mindset prior to committing afresh on tonnage, especially since virtually all sub-continent recyclers have taken in their respectable shares of tonnage over recent months.

The pause may have inadvertently coincided with an overall firming of most recycling destination currencies, and it has also come at a time when steel plate prices have finally started trading in Bangladesh. However, steel levels in Bangladesh and India jointly declined through the week.

“Bangladeshi and Pakistani budgets have also gone by, both of which delivered adverse impacts on vessel offerings, as well as negative sentiments at each location,” reports GMS. “India isn’t too far behind with mixed feelings about their own upcoming budget, after unexpected election results greatly affected local mindsets about the immediate economic future of the nation. As such, we can only hope that with the announcement of India’s budget, the most pronounced impact on these markets would finally conclude for 2024.”

Turkey remains dead despite local vessel offerings that have made a remarkable leap earlier in the year.

Overall, as recycling prices cool off by about USD 20 – USD 25/LDT in the sub-continent markets, it is almost guaranteed to be an inadvertent period of relief for recyclers as tonnage shortage still maintains a militaristic hold on the availability of meaningful bulkers, tankers, and container ships for the recycling markets to absorb, and as such, a slumber-some monsoon might continue at the sub-continent recycling destinations as the world gradually starts to head off on summer holidays.

For week 27 of 2024, GMS demo rankings / pricings are: