Ship Recycling Market Outlook Increasingly Positive
Cash buyer GMS notes that despite incoming president Trump’s announcement of applying sweeping tariffs to the tune of 25% on China, Mexico and Canada, the U.S. economy continues to firm as U.S. inflation drops to (globally) fantastic levels and the US Dollar strengthens against nearly all ship recycling nation currencies this week.
The news of the ceasefire between Israel and Hezbollah ceasefire eased tensions around trade routes, and a healthy number of already beach-worthy yet still employed ladies finally make their appearances at the various ship recycling waterfronts, especially Alang.
“With sub-continent markets gradually settling into a familiar routine of introductions and acceptances at the bidding tables at prevailing levels, a fragile sense of stability in a market that has otherwise seen the worse an industry could offer, is gradually starting to come through,” says GMS.
“As recycling nation currencies weaken and steel prices remain shaky, plate levels plummeted in Pakistan (and even Turkey) this week, sending Gadani sentiments further South for the upcoming Winter and all but wiping out sensible exchanges with Gadani buyers.”
Bangladesh descended into a week of virtually no activity at the bidding tables other than local deliveries.
“Overall, as both India and Bangladesh will likely have concluded key elections within Q1 2025, ship recyclers in these markets can hopefully move forward on the back of some sensible modifications to upcoming domestic / infrastructure projects and steel from local yards should start to shift at pace once again.”
The lack of domestic demand for recycled steel within ship recycling nations has been met with a low supply of tonnage over the course of 2024.
Chinese businesses are preparing for a stimulus package, which offers hope for steel plate price patterns at competing nations. The stimulus package is further expected to impact shipping markets and global trade patterns at large, especially as Trump’s announcement of punitive tariffs has already seen economic forces reacting to his intent.
GMS predicts that supply, demand and vessel pricing should improve next year.
GMS demo rankings / pricing for week 48 of 2024 are:
