In the Indian subcontinent, the ship recycling hubs of Bangladesh, India, and Pakistan have all reported a weakening in local steel plate prices, while the US Dollar has continued to dominate against the recycling nation currencies. Despite the gloomy outlook, a marginal number of vessels have surprisingly arrived at the various waterfronts, including a small LDT unit at Gadani, Pakistan.
The industry's woes have been further exacerbated by the results of recent elections and subsequent budgets in the respective countries. Bangladesh's budget has levied additional duties on the fuel onboard incoming recycling vessels, while concerns over the US Dollar reserves in both Chattogram and Gadani have added to the uncertainty. In India, the worries over Prime Minister Modi's ability to maintain a majority government through the recent General Elections have the potential to erode the mindset of local recyclers, at least until the budget is announced in the coming week.
Amidst the global descent, the ongoing warfare in Ukraine and the Middle East have taken center stage, with NATO Allied Forces, including the United States, ensuring the security of Ukraine as per the terms of the alliance. The delicate peace talks between the US and the leaders of Hamas have also been threatened by Israel's recent strikes near Khan Younis, which led to the unfortunate passing of scores of refugees.
The retaliatory attacks by Houthis in the Red Sea lanes have further exacerbated the current state of inflation, as they continue to put pressure on international logistics and freight rates for merchant vessels destined for the Mediterranean waters.
As the industry faces a serious shortage of recycling candidates, it is expected to remain relatively quiet through much of the third quarter of 2024, as all sectors continue to perform admirably despite the prevailing challenges.
The GMS demo rankings and pricing for week 28 of 2024 reflect the ongoing turbulence, with Bangladesh, India, and Pakistan all reporting weaker sentiments and lower vessel prices, while Turkey remains in a dead state.
