The Indian sub-continent ship recycling markets have been experiencing turbulent effects, making it challenging to determine prices for different types and sizes of vessels. The situation has been further complicated by the recent fluctuations in crude oil prices, with the barrel price breaching $60 for the first time in several months.
This surge in oil prices has had a ripple effect on the market, causing prices to fluctuate wildly. As a result, buyers are finding it difficult to identify reliable and affordable options for purchasing vessels for recycling.
The situation is further exacerbated by the ongoing depreciation of local currencies, including the Indian Rupee and the Turkish Lira, which have led to fluctuations in steel prices and making it harder for yards to compete with one another. Despite this, some markets are showing signs of improvement, such as Pakistan's Gadani recyclers, who have seen an increase in demand and pricing due to a slowdown in the import of cheaper Iranian steel products.
However, the overall market remains unpredictable, with yards struggling to secure tonnage and provisional DASR certificates. The situation is likely to continue playing out like a game of musical chairs, where buyers must constantly adapt to changing circumstances to find reliable options for purchasing vessels for recycling.
The current state of the ship recycling industry is akin to a game of musical chairs, where buyers are forced to constantly adjust their strategies to stay ahead in a rapidly shifting market. The ongoing fluctuations in crude oil prices and local currencies are making it increasingly difficult for yards to compete with one another, leading to a situation where buyers must be prepared to adapt quickly to find reliable options.
