GMS: Bangladesh and Pakistan thrive amid challenges in Turkey and India

According to GMS’s latest weekly ship-recycling report, the ongoing & seemingly endless dearth in the supply of viable candidates has been mercifully keeping the Bangladeshi & Pakistani ship recycling markets steady on the one hand.

On the other hand, the Turkish and Indian markets continue to endure their respective shares of a notably trying time, given that the Turkish Lira continues to plummet even amidst a mercifully quieter week (on account of Ramadan), while India continues to endure its share of nerve-racking volatility in local steel plate prices as well as the Indian Rupee, likely on the back of Alang Buyers anxiously anticipating the results of the upcoming General Elections next month, with voting expected to last 7 weeks & the results being announced on June 4 th. With any luck, further economic measures to stimulate this lackluster economy will hopefully be implemented by the Modi government, which is expected to win in another landslide election.

Notwithstanding the above, prospects for Alang’s ship recycling sector have not been quite this bad for many a year now, as most domestic Recyclers continue to abstain from the buying even today, rather than conclude at what is only being perceived as loss-making levels in these present times. Moreover, cheap Chinese billets have also started to infiltrate the local market once again and despite prohibitive anti-dumping measures being set in place, this most recent batch of imports is causing much consternation amongst Indian steel traders, as Alang Buyers are still preferring to wait-and-watch market developments even now.

The industry’s overall focus has therefore shifted towards a far-firmer Pakistan and Bangladesh of late, given that both markets have come back ever-so strongly since the start of the year, pursuant to an increased rate of L/C approvals & a blistering hunger to acquire tonnage, given that so many yards have been  ormant
following an unimpressive few quarters ending 2023. All major (sub-continent) recycling market currencies have also been on an overall positive trend of late, except the Turkish Lira, which has displayed no mercy towards its own economy, derailing itself against the U.S. Dollar & nearly declining by about TRY 1 with each passing week. Overall, as dry bulk markets progressively reach new highs, the supply of tonnage from this sector seems likely to remain agonizingly muted for (perhaps) the remainder of the year, as a quantum of older vessels are apparently earmarked for drydocking, rather than head towards a recycling sale, all while containers too are yet to see any meaningful movement this year as well. 

Rank Location Sentiment Dry Bulk
1 Bangladesh Steady 510 / LDT 530 / LDT 550 / LDT
2 Pakistan Steady 500 / LDT 520 / LDT 540 / LDT
3 India Weak 480 / LDT 500 / LDT 520 / LDT
4 Turkey Declining 320 / LDT 330 / LDT 340 / LDT