The ship recycling market experiences sluggish activity during Diwali celebrations, with reports indicating a quieter pace and limited sales in major ship recycling markets. While the Indian recyclers lead in pricing, there is anticipation of increased activity post-Diwali as the shortage of tonnage improves indications. Bangladesh and Pakistani markets face challenges with unresolved issues in opening Letters of Credit (LC). However, a recent agreement between IMF staff and Pakistani authorities may alleviate the LC problems. Alang Recyclers in India slowly return to work amidst declining plate prices and ongoing concerns about currencies. Turkey sees minor improvements, and despite a slow week, expectations remain for a firmer market in early 2024. The industry is navigating challenges such as the lack of U.S. Dollar reserves and government mandates restricting foreign currency allocation, impacting the ship-recycling destinations. The overall sentiment suggests a cautious outlook with hopes for a stronger start to 2024.The ship recycling market faces a period of slow activity influenced by Diwali celebrations and ongoing challenges in major markets. Industry players express cautious optimism, expecting a potentially firmer market in early 2024, contingent on improvements in international steel prices and resolution of existing challenges.

IMAGE CREDIT: GOOGLE