The ship recycling market in Pakistan continues to face high demand, while several buyers are looking for fleets, but no ships are available. Interest in purchasing remains strong, while the lack of Iranian steel continues to support recycled ship steel. Overall, this market is well supported by demand, and demand is outpacing the limited inventory of ships.
Stability in the Turkish Market
The Turkish ship recycling market has remained largely stable this week, with no significant changes in demand or prices observed. Market activity continues slowly, and the availability of ships is mainly influenced by regulatory requirements and positioning. Workshops have been comfortably covered by their existing commitments, and the need to compete for fresh fleets has been limited. Buyers continue to prefer focusing on well-maintained and high-quality ships and have adopted a more cautious approach towards less attractive units. The ongoing weakness of the Turkish lira also impacts market sentiment and pricing.
Developments in the Indian Market
In a separate report, the Intermodal shipbroker announced that the Alang market continued its stability last week, backed by a strong local steel market. The halt of Iranian steel imports has increased demand for scrap steel. However, the depreciation of the rupee against the dollar has put some buyers in a wait-and-see mode. India has been less competitive in traditional fleet matters in the subcontinent, and the number of candidates in this area is limited. However, activities are focused on specific non-ferrous candidates, and processing of sanctioned ships continues. The Chattogram market lacks new force, and low demand has led to limited ship supply to support prices.
On the economic front, the inflation rate in August has decreased to 8.26%, indicating a reduction in price pressures. The Gadani market remains strong, with offers among the strongest across the subcontinent. Demand is healthy, although activities continue to be affected by limited ship supply. The ongoing lack of Iranian steel helps maintain demand for recycled scrap, while the shortage of fresh candidates limits opportunities for buyers. In terms of policy, the sales tax regime dependent on electricity gives a significant advantage to steel producers reliant on imports over users of domestic scrap, prompting ship recyclers to increase efforts to secure fair treatment for local recycled materials.
The Turkish market has slightly improved this week, with prices rising alongside stronger market conditions for steel. However, demand for new recycling candidates has decreased as workshops focus on processing previous fleets. High energy costs and the ongoing weakness of the currency remain key factors in the challenges facing the recycling sector and the broader Turkish economy.
