en.Wedoany.com Reported - The ship recycling market remains firm against a challenging overall backdrop, with Bangladeshi recyclers performing most prominently.
Cash buyer Best Oasis noted in its latest weekly report that domestic market sentiment in India is stable, but high exchange rates severely constrain its ability to compete with Bangladesh and Pakistan for standard tonnage. India will primarily focus on specialized assets going forward, while bulk carriers and tankers will continue to flow to Bangladesh and Pakistan, where pricing is more favorable.
In the Bangladesh market, although the strong momentum of the past two weeks has moderated, local buyers remain actively seeking tonnage, albeit with a more cautious approach. Days of heavy rainfall in Chittagong have affected operations and dampened immediate demand. With the monsoon season approaching, prices are expected to remain within the current range, and market sentiment may be relatively weak over the next two to three months. No significant changes have occurred in Pakistan this week; buyers' willingness to acquire remains intact, but pricing still cannot match Bangladesh. Recent regional tensions have led to a shortage of imported scrap and shredded steel from the Gulf, providing some support to the market. The latest vessel was concluded at USD 456 per light displacement ton, further reinforcing firm expectations. The Turkish market remained largely stable this week, with no major fluctuations in prices or sentiment.
Shipbroker Intermodal commented that the preliminary framework agreement between the U.S. and Iran briefly boosted expectations for normalization in the Strait of Hormuz, but the freight market remains elevated, leaving owners reluctant to retire capacity. Alang, India, remains under pressure, with deteriorating steel fundamentals compounded by unfavorable exchange rates, pushing it out of the competition for mainstream tonnage. Although Bangladesh maintains its leading position in the South Asian subcontinent, sentiment has noticeably cooled. Steel plate prices, which remained firm for most of the quarter, have begun to decline. Buyer purchasing willingness has become more cautious due to the approaching monsoon, disruptions from early rainfall, and softening steel prices. The Gadani market in Pakistan was stable this week, with the domestic steel market retaining some resilience due to the shortage of imported scrap from the Gulf, but inflationary pressures continue to intensify. Turkey remains largely on the sidelines, weighed down by Lira depreciation, re-accelerating inflation, and weak domestic steel demand.
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