The global ship recycling market is moving into a more difficult quarter, with rising costs, rising steel prices, possible slowdown in local steel demand, energy shortages and exchange risks. This makes it challenging for shipowners to predict market trends and secure favorable prices for their vessels. As a result, the gap between headline market sentiment and actual executable prices may widen. Despite this, the slower supply of recycling candidates means that ship owners are likely to receive higher prices than market indications.
The Indian subcontinent is particularly affected by these factors, with Bangladesh and Pakistan showing firmer pricing signals compared to India. In India, recyclers are still offering low price levels despite local steel plate prices, local scrap prices, and imported scrap prices increasing. The energy shortages affecting steel mills have also slowed down local steel demand, adding pressure on the market. However, a partial relaxation of LPG supply to the steel sector may help alleviate some of the concerns.
The market is not short of recycling capacity, but the supply of recycling candidates continues to remain short,
The global ship recycling market is experiencing increasing volatility due to rising costs, steel price fluctuations, and geopolitical tensions.
