"The ship recycling markets across India, Bangladesh, Pakistan and Turkey showcased varied dynamics. India's market initially displayed stability but soon faced a downturn, indicating a decreasing trend in performance," said Best Oasis.

"Bangladesh's market continued its phase of cautious buying, with buyers preferring to negotiate for vessels at lower prices, leading to a lull in aggressive buying activities."

"Pakistan observed a period of calm, marked by a stagnant market with no significant shifts or events. Conversely, Turkey experienced a notable downturn, with vessel prices significantly falling by $10 to $15, exacerbated by a supply shortage due to optimistic freight market prospects driving up demand and limiting vessel availability," said Best Oasis.

"In light of recent forecasts by Fitch Ratings, the availability of ships for recycling could see varying levels, influenced by forecasted short-term profit gains for international shipping firms."

"These gains are primarily driven by freight rates that remain high enough to counterbalance the expenses associated with diverting ships away from the troubled Red Sea, where attacks on commercial vessels persist," said Best Oasis.

"Despite these challenges, the shipping industry is not anticipated to undergo significant structural transformations. Nevertheless, the upward pressure on freight rates is expected to continue into the medium to long term, fueled by rising operational costs, increased charges at ports, and the economic demands of complying with more stringent environmental regulations."

"Therefore, although we might not witness an immediate increase in the number of vessels heading for recycling, the shifting economic conditions are poised to shape the trajectory of ship recycling activities in the foreseeable future," said Best Oasis.

"The demolition industry is facing a severe shortage of vessels suitable for recycling, especially larger tonnage. This shortage is the result of a confluence of geopolitical tensions, robust freight rates, and strong chartering activity across various segments, which has prompted shipowners to keep their vessels in the water. India's recycling hub, Alang, lacked tonnage as local buyers were reluctant to offer competitive prices."

"This reluctance can be attributed to the uncertainty surrounding the upcoming elections and the influx of cheaper steel imports from China, despite strict anti-dumping measures in place. As a result, India has lost potential tonnage to rival destinations unless the ships require HKC-compliant recycling."

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