Ship Recycling Sentiment Remains Low

Recycling sentiments remain negative overall, according to cash buyer GMS, and it seems to now be a declining market.

There are very few open recyclers and they are unwilling to offer realistically on the few vessels that are currently available in the market.

Ravaging monsoon rains are the leading cause of the ongoing slowdown in the sub-continent as minimal cutting / recycling activities at yards is taking place and as such, the market is barely moving forward with the minor number of vessels being committed.

“There is no question that cash buyers and vessel owners are unaccepting of some of the opportunistic offers being put out there and as such, we are witnessing something of a standoff on any number of unsold vessels at present,” says GMS.

The one confirmed sale for the week saw a Sinokor controlled container that was committed for an extraordinary price into Bangladesh. GMS warns that this is not a true reflection of current market conditions.

Encouragingly, enquiries have been emerging from Pakistan, and this may establish a new direction for cash buyers and Gadani recyclers, after especially having been out of the game for so long.

“India once again slips to the lowest placed of all sub-continent markets, and as the supply of green ships and specialist units dries up, Alang buyers are seeing minimal tonnage and new arrivals, as evident from this week’s local port position, which reported no fresh arrivals.”

The Turkish market remains quiet like the sub-continent markets.

For week 30 of 2023, GMS demo rankings / pricing for the week are as below.