Ship recycling market impacted by crisis in the Red Sea

The recycling market for end-of-life ships is expected to remain active, despite expectations of a slowdown in the dry bulk and container sectors as Chinese New Year approaches. Bangladesh and Pakistan have become signatories to the Hong Kong Convention, with facility upgrades likely in both countries. Norway has pledged funds for the Bangladesh recycling sector, and financial support has been provided by the Japanese Government and the Japan Shipowners’ Association.

The subcontinent markets, including Bangladesh, Pakistan, and India, remain relatively quiet, with an uplift before Chinese New Year unlikely. Two MSC container ships have recently arrived in Alang as part of the container line’s disposal program. Recycling yards in Turkey are also quiet. Bangladesh leads the league in terms of typical prices for ship recycling, with sentiment improving, followed by Pakistan and India. Turkey has the lowest typical prices and weak sentiment.

Overall, the ship recycling market in the subcontinent remains active, with Bangladesh leading in terms of prices and sentiment, followed by Pakistan, India, and Turkey. The arrival of MSC container ships in Alang and the support pledged by Norway and Japan indicate continued activity in the ship recycling market.

Source .