South Asia's imported ship recycling market maintains stability w-o-w

The South Asian imported ship recycling market, as 2023 comes to a close, faces a challenging year, marked by plummeting prices and low volumes. Owners and buyers alike are reeling from a $150/LDT drop, with prices crashing from over $600/LDT to below $500/LDT.

Currencies and steel prices are finally stable, and more ships from the dry bulk and container sectors could arrive. But the key lies in financing. Incoming IMF loans and settled elections might encourage banks to open their wallets and buyers to fill their yards.

However, India lags behind, with prices falling further this month. Meanwhile, regulatory changes loom in 2024, with the UAE's new directive and the EU potentially considering Indian yards.

So, while challenges persist, a glimmer of hope shines for a possible rebound in the new year. The outlook for 2024 is better though.

India

India's ship recycling scene is a mixed bag. While they managed some small sales, prices kept plummeting, down a whopping INR 1,000 this week! This might be the bottom, though, offering a glimmer of hope for a steadier market. The upcoming elections likely won't shake things up, so maybe 2024 could see an upward climb.

The total tonnage received at Alang port last week was 16,095 LDT.

Bangladesh

In Bangladesh, things are on hold. Political elections and tight bank wallets are keeping buyers cautious. No one wants to commit until the dust settles. This lack of funding is hitting hard, slowing down new deals. Even the central bank's efforts to calm the rising dollar haven't helped much. It looks like tough times are ahead for Bangladesh's ship recycling market.

The total tonnage received at Chattogram Port last week was 527 LDT.

Pakistan

Pakistan's ship recycling market is cruising towards a bright 2024, fresh cash injections are expected soon, opening the door for more deals in Gadani. They prefer smaller ships like Panamax bulkers, around 9,000-10,000 LDT, which are easier for banks to approve and don't drain precious dollars. With Bangladesh struggling, Pakistan could be the star of the show next year, especially after its recent upgrade to HKC standards. As long as buyers stay sharp and manage their finances, it's smooth sailing ahead.

The total tonnage received at Gadani Port last week was nil.