The ship recycling market in India is currently experiencing intense competition among buyers due to strong demand and nearly zero supply of ships. This situation reflects the strength of the recycling market in India, which is recognized as an attractive destination for obsolete ships due to competitive prices and high domestic steel needs.
Decrease in Demand in the Pakistani Market
In contrast, the ship recycling market in Pakistan is facing a significant decline in buyer interest. Buyers are not as interested as they were in previous weeks, which is due to some buyers receiving new ships. The local market for sheets and ship scraps has experienced a notable decrease in price and demand, with prices dropping by approximately $25 to $30 per ton.
One of the main reasons for this decline is the influx of surplus goods from Iran into the Pakistani market, which has created downward pressure on prices. In a significant development, a damaged oil tanker that was reported to have been attacked in the Strait of Hormuz has entered the ship recycling market. Overall, buyer interest has decreased, and weak local demand along with increased supply from Iran has put significant pressure on prices and market sentiment.
Stability in the Turkish Ship Recycling Market
The ship recycling market in Turkey has also faced a decrease of approximately $9 per ton in import prices over the past week. However, the local market has remained relatively stable, with no significant changes reported in market conditions. Ship prices have generally remained stable, and no major movements in the ship recycling market have been observed.
While the Indian market is showing positive signs due to high demand and higher local prices, other markets such as Bangladesh and Pakistan remain at previous levels. Given rumors about a potential easing of sanctions for some oil tankers, more ships may enter the market, which could help improve the recycling situation in the coming weeks.
Activity along the coasts of India continues due to ships being supplied in recent weeks, and the number of ships circulating in the market has decreased. In Bangladesh, the desire to purchase available ships remains strong while the supply of ships is limited. Local steel sheet prices have also increased, and a barge sale has been reported this week.
On a macroeconomic level, the International Monetary Fund has revised Bangladesh's economic growth forecast for 2027 down to 3.2%, which aligns with the World Bank's forecast (3.4%). The Gadani market continues to face weak demand, and buyers are still refraining from further purchases. Local steel prices have remained stable compared to last week, and the pressure from steel imports from Iran continues to affect recyclers.
Economically, Pakistan is negotiating with the United States for a $10 billion facility to support its liquidity and foreign currency needs following its recent credit rating upgrade. Currently, the Aliaga market has also remained stable, with local steel demand slightly decreasing and prices approaching last week's levels.
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