The metal recycling market, especially in Bangladesh, is facing strong demand, while fluctuations in oil prices and weakness in the steel market have created new challenges. Brent crude oil prices have reached $99 per barrel, and West Texas Intermediate (WTI) crude oil prices are around $91.
Oil Price Fluctuations and Their Impact on the Market
Brent crude oil prices have sharply declined, and this trend is reducing operational costs for companies. However, uncertainty regarding security conditions in the Gulf and the Strait of Hormuz continues to affect decisions related to recycling and the employment of tankers.
Read more: Masoud Pezeshkian emphasized the necessity of securing energy for factories
The Steel Market Situation and Challenges
The steel market is also facing price declines in India and Pakistan. Meanwhile, Chinese steel prices have clearly decreased. This comes as Bangladesh is under pressure with steady demand and a strengthening US dollar against the taka. These conditions limit purchasing flexibility while signs of recycling prices remain unchanged.
On November 4, the ENVI committee of the European Parliament objected to the proposal to include Indian ship recycling yards in the approved European list. This objection has been raised due to environmental concerns and is not a final rejection. A full parliamentary vote is expected later this month.
Trade in Bangladesh and Market Competition
In Bangladesh, there is still strong demand for old ships, and this trend is expected to continue as the demand season approaches. Pakistan and Turkey are consistently active in this regard, while India is seeking new opportunities in specialized and higher-value ships.
Despite the existing market fluctuations, buyers continue to hold their positions, but shipping revenues and second-hand options still prevent owners from releasing old ships. Bangladesh operates confidently, India maintains its specialized strengths, and Pakistan and Turkey act cautiously. Ultimately, the shortage of old ships willing to sell remains a major challenge for the recycling market.
Read more: Hemat Qalizadeh emphasized the necessity of reviewing the privatization of refineries · Brent crude oil prices reached $98.01
