Shipowners with older or harder-to-place vessels may have a stronger opportunity to test the recycling market over the coming months, as limited demolition supply continues to support recycler appetite despite weaker steel conditions in some key markets. Wirana Shipping’s latest market outlook indicates that supply is likely to remain tight in the near term, unless an Iran sanctions waiver forms part of a wider settlement to the Middle East conflict and releases additional tonnage into the market.

Without that shift, improving or resilient freight conditions in several trading segments are expected to keep many older vessels trading rather than being sold for recycling. Container demand and charter rates have improved, secondhand demand for container vessels is strengthening, and LPG market conditions remain favourable, while tanker markets could also gain support if oil restocking follows a wider Middle East settlement.

Dry bulk remains more mixed, with capesize rates down but other sizes showing marginal improvements. Even so, the wider market picture points to a restricted flow of recycling candidates, leaving recyclers competing for available vessels at a time when some owners may have more leverage than usual.

India has seen recycling prices hold steady despite softer local steel fundamentals, while Bangladesh recyclers have shown willingness to improve offers as they look to secure tonnage. Pakistan also remains short of available vessels, with only limited dry tonnage circulating.

Mr Khetan, CEO of Wirana Shipping, said: “The question for owners is whether they wait for clarity or take advantage of a market where recyclers still need tonnage. If an Iran sanctions waiver becomes part of a wider Middle East settlement, additional units could come forward and change the supply picture quickly. Until then, owners with older or less attractive vessels may find today’s market more receptive than expected.