Marine Link highlighted that week 45, ship recycling markets have shown a notable rise, with values increasing by approximately USD 10 per Light Displacement Tonne (LDT) across major markets, according to GMS, a prominent cash buyer. Bangladesh has overtaken India as the top market for ship recycling, securing recent deals, including two Panamax bulk carriers at prices in the USD 470s/LDT range.
Market Overview and Outlook
While the markets in the Indian subcontinent appear to have stabilized after previous declines, there remains a cautious optimism as we approach 2025. GMS suggests that prices may not reach the USD 500/LDT threshold before the first quarter of next year, but a period of stabilization is anticipated, especially as Donald Trump’s upcoming inauguration on January 20, 2025, may influence global and Middle Eastern policies. This uncertainty keeps stakeholders alert to potential market shifts in early 2025.
Impact of Global Economic Factors
The recent U.S. election has provided a temporary boost in trading and ship recycling, but GMS notes that more definitive trends may emerge after Trump’s policies become clear. Global factors, including rising U.S. debt under the new administration and continued inflation, are likely to exert pressure on the market into 2025. A key factor to watch is China’s potential economic stimulus package, which could play a role in easing trade concerns, particularly those linked to the ongoing trade war.
Current Market Pricing (Week 45 of 2024)
According to GMS’s recent pricing and rankings, Bangladesh holds the leading position, followed by India. The week saw values at approximately USD 470s/LDT for Panamax bulk carriers in Bangladesh, a strong indicator of the current ship recycling market’s resilience despite global uncertainties.
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Source: MARINE LINK
