Ship Recycling Market at Crossroads ahead of the enforcement of the Hong Kong Convention: BEST OASIS
As the clock ticks down to the enforcement of the Hong Kong Convention, the global ship recycling market stands at a crossroads marked by hesitation, minimal activity, and growing regulatory pressure. In India, the pace remains slow with limited interest, but the country could emerge stronger post-HKC, backed by a relatively higher number of compliant yards. Bangladesh continues to face a deadlock, with vessels anchored offshore awaiting NOC approvals and no resolution in sight ahead of Eid and the June deadline. Pakistan has seen a flicker of buying activity driven by timing, but the absence of compliant yards and silence on any extension keeps sentiment fragile. Meanwhile, Türkiye remains subdued, with stable pricing and little indication of renewed momentum, as the broader industry braces for the shifts to come.
Recent developments in US-China trade relations have eased immediate tensions, but the overall situation remains uncertain. While some tariffs have been rolled back, a large number are still in place, and no long-term agreement has been reached. Earlier increases in cargo volumes, as companies rushed to ship goods before higher tariffs took effect, have now normalised. Businesses remain cautious, delaying investment and long-term planning due to the lack of policy clarity. For the shipping industry, the impact is significant. Trade routes are still being adjusted, supply chains are under review, and demand across key markets remains unpredictable. Without a stable trade framework, the sector is likely to face continued disruptions and uneven recovery.
Exchange Rates:
USD / INR USD / BDT USD / PKR USD / TRY
This Week : 85.26 Previous Week : 85.57 Gained : 0.31
This Week : 121.89 Previous Week : 121.44 Lost : 0.45
This Week : 282.03 Previous Week : 281.55 Lost : 0.48
This Week : 39.03 Previous Week : 38.83 Lost : 0.20
Best Oasis Limited Weekly Ship Recycling Report 02
India
Muted conditions persist, though regulatory shifts may support India ahead. The market remains slow, with reduced interest and limited movement across the board. The local market has also come off further, and there is no visible sign of recovery or fresh activity at present.
However, with the Hong Kong Convention (HKC) coming into force in June, the broader outlook could shift. One competing destination has only a few HKC-certified yards, and the other has none. While this is not yet reflected in current volumes, it has the potential to strengthen India’s position as a compliant and preferred recycling destination going forward.
Separately, a crude tanker acquisition plan worth ₹85,000 crore (approx. USD 10 billion) is in motion to reduce dependence on foreign-owned vessels. The plan begins with 79 ships, including 30 medium-range carriers. The first order for 10 tankers is expected later this month.
Beaching Dates
24 May to 01 June
09 June to 17 June
22 June to 30 June
Bangladesh
Price for Recycling Ships in Bangladesh Market remains uncertain with key deadlines and compliance pressure ahead.
The market continues to drift without clear direction. With HKC set to come into force soon, there is still no indication of what will unfold in the coming days.
As reported previously, five units have been waiting outside for over three weeks since their NOC applications. However, approvals have not been granted. Non-green yards are still hoping to receive clearance, but the chances of the ministry issuing NOCs at this stage are almost none.
Buyers are not showing much interest at the moment. Most are waiting and watching, looking for ways to bring prices down and reduce competition, especially with fewer yards expected to remain active.
A 10-day Eid al-Adha holiday will begin in the first week of June, further slowing down any movement. Once the regulation takes effect on 26 June, non-HKC yards will no longer be eligible to receive vessels. With limited time remaining and no sign of approvals, market sentiment remains cautious and uncertain.
Beaching Dates
26 May to 29 May
11 June to 14 June
24 June to 27 June
Pakistan
Price for Recycling Ships in Pakistan The market awaits clarity as HKC enforcement nears and yard readiness lags.
The market continues to operate in a state of uncertainty, with no confirmation from the authorities on whether an extension to the HKC deadline will be granted.
The region has no compliant yards, and with time running out, there is still no clarity on how the situation will be managed. This gap continues to weigh on recycler sentiment.
Some buying has been observed ahead of the enforcement date, leading to a moderate increase in prices. This activity appears driven by timing rather than any shift in underlying confidence. In the absence of clear direction from the government, the market remains cautious and closely watchful.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye Another quiet week with no change in market conditions or price levels.
The market continues to reflect the same depressed conditions as last week. There has been no change in pricing, whether for imports or locally, and no improvement in sentiment or activity.
Türkiye’s Central Bank has kept its inflation forecast steady at 24 percent for 2025 and 12 percent for the end of 2026. It aims to bring inflation down to 8 percent by 2027 and stabilize around 5 percent over the medium term. At the same time, the TLREF fell sharply to 45.8 percent this week, its lowest level since mid-April, reflecting increased liquidity and a more accommodative stance on short-term funding.
Beaching Dates Throughout the month
List of Vessels Sold this Week
VESSEL NAME TYPE OF VESSEL IMO NO.YEAR OF BUILD COUNTRY OF BUILDLDT TERM OF SALE LOCATION OF DELIVERYSALE PRICE/LDT (USD)
LADOGA GENERAL CARGO SHIP 8215730 1982 GERMANY 980.00 AS-IS UK UNDISCLOSED SUNNY MAPLE CONTAINER 9133484 1996 SOUTH KOREA 2,230.00 AS-IS SOUTH KOREA UNDISCLOSED
