The ship recycling markets across the Indian subcontinent remain in a downward spiral, with ongoing financial and industrial pressures dragging sentiment to record lows, reports cash buyer GMS. Weak steel demand, volatile currency markets, and tariff shocks are creating a perfect storm of challenges as the year’s final quarter approaches.
Market Pressures and Freight Dynamics
Currency instability particularly in India combined with faltering steel dynamics and reduced demand, has sent recycling activity into “terminally negative territory,” according to GMS.
Meanwhile, the Baltic Dry Index edged slightly higher to 1,979, a modest 0.8% gain. Supramax and Ultramax segments (56–64k DWT, post-2010) continue to dominate the market spotlight, largely supported by Greek and Chinese private buyers.
Many deals are reportedly tied to time-charter attachments, enabling owners to secure returns despite fragile demand. Capesizes, however, remain subdued, contributing to an overall index decline of 2.3%.
Ship Recycling Infrastructure and Regional Performance
Bangladesh continues its push toward Hong Kong Convention compliance, with most yards now HKC-approved. Yet, approvals also revealed a significant decline in the number of active yards, highlighting the industry’s structural fragility.
Local authorities in Chattogram and Pakistan are still allowing interim deliveries, though activity is muted, with only one new arrival reported across the region this week. In India, local steel plate prices remain stagnant, while rival markets display erratic week-to-week swings. With monsoons waning, supply would typically increase, but current conditions remain astonishingly subdued.
The South Asian recycling markets are struggling to find footing as economic headwinds persist. India reels from tariffs and currency shocks, Bangladesh races to meet compliance standards, and Pakistan maintains relative stability.
Freight markets remain fragile, keeping tonnage supply scarce, while Turkey continues to remain largely detached from the region’s activity. Unless steel prices stabilize and demand strengthens, the subcontinent’s recycling industry is likely to face further contraction in the weeks ahead.
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Source: MARINE LINK
