Global ship recycling markets are facing instability, with steel prices in India and Pakistan reacting to new tariffs on Chinese imports and currency fluctuations, particularly in Bangladesh, further complicating the situation. Cash buyer GMS highlights these ongoing issues in its latest report.
Falling Vessel Prices and Uncertainty
Vessel offers have dropped significantly, by over $90/ton, from highs of over $600/LDT to below $500/LDT. This decrease is due to uncertain market conditions, with ship recyclers hesitant to commit to new purchases and seeking stability before making firm offers.
Impact of MSC’s Recycling Policy
MSC’s decision to sell vessels exclusively to HKC’s pre-approved Indian yards briefly improved the mood in Alang and increased tonnage at its waterfront. However, this uplift was short-lived, with the overall market still facing challenges due to global uncertainties.
Currency and Tariff Pressures
Bangladeshi Taka saw its worst performance since May, when India and Pakistan’s steel prices were hit by a 30% tariff on Chinese goods. These factors are causing nervousness among recyclers, leading to limited offers and cautious market behavior.
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Source: MARINELINK
