The ship recycling market in Bangladesh is currently facing soft conditions despite strong demand from buyers. Buyers are actively seeking suitable vessels for recycling, but the availability of recyclable ships is severely limited. Very few ships are currently offered for sale, and this situation has led to a decrease in trading activities in the market.
Market Conditions for Ship Recycling in Bangladesh
Despite the market conditions being generally assessed as cautious, buyers remain interested in securing available vessels. The shortage of ships due to supply constraints has in turn kept the market in a weak state. Buyers are striving to attract ships with suitable positions and attractive commercial features.
Meanwhile, the ship recycling market in Pakistan has experienced mixed movements compared to last week. Despite trade restrictions, buyers have maintained strong purchasing capacity and willingness to buy ships. The closure of the Iran-Pakistan border has halted the import of steel and rebar from Iran, which has had a positive impact on the local ship recycling industry. The reduced access to imported steel has increased demand for locally recycled steel.
Market Developments in Turkey
The ship recycling market in Turkey has also remained stable, with limited trading activities reported this week. The Turkish lira remains weak, but currency fluctuations have not currently affected recycling prices. Access to ships is influenced by EU regulations and the supply of suitable vessels. Overall, Turkish recycling yards are relatively active and selective in their purchasing approach, seeking ships with specific and attractive commercial features.
In a separate weekly report, a shipbroker named Intermodal announced that recycling markets have generally remained stable over the past week, except for Pakistan and Bangladesh, which have maintained their strong demand despite weak market conditions. The Alang market in India has also remained stable, retaining the positive sentiment from last week. Local steel sheet prices have increased despite the holidays.
In terms of policy, the number of authorized ship recycling facilities by the Gujarat Maritime Council has reached 47, marking an important step towards compliance with recycling yard requirements. In Chattogram, despite soft market conditions, buying interest remains strong. The local steel market is generally stable, but festival holidays have slowed down demand momentum.
