GMS’ latest report highlights a significant seasonal slowdown in ship-recycling activity across the Indian sub-continent, exacerbated by various global and local factors.
Global Influences
Global geopolitical issues, including the Ukraine conflict and Middle East tensions, have intensified, affecting the broader economic landscape. Ukraine’s integration into NATO and conflicts in Israel and the Red Sea have contributed to heightened international logistics and freight costs, worsening inflation.
Local Market Conditions
In local markets, weakening steel plate prices in India and Bangladesh, coupled with a strong U.S. dollar, have impacted ship recycling economics. Additionally, political instability, like concerns about India’s recent general election, further dampens market sentiment.
Current Market Sentiment
Despite the challenges, a small number of vessels have arrived at recycling locations. GMS demo rankings/pricing indicate varying degrees of market sentiment:
- Bangladesh: Shaky
- India: Uncertain
- Pakistan: Dull
- Turkey: Dead
Overall, the ship-recycling market faces a complex mix of global and local pressures, with a cautious outlook for the coming months.
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Source: Safety4Sea
