Mixed Sentiments Across South Asian Markets as Prices Ease Slightly: STAR ASIA
World’s leading cash buyers for ships sending for recycling, STAR ASIA in their weekly ship recycling report opined that the South Asian ship recycling market experienced a week of mixed trends, reflecting cautious optimism amid mild price corrections and shifting buying patterns. While India witnessed a softening in market levels toward the end of the week, Bangladesh saw signs of revived buying interest, and Pakistan managed to sustain activity despite weather disruptions. Turkiye, on the other hand, remained largely stable, showing no major changes in sentiment or demand.
India: Market Softens but Remains Resilient
The Indian ship recycling market started the week on a relatively firm footing but gradually lost momentum as the week progressed. Prices weakened slightly, signalling a mild downward adjustment after a period of sustained strength. Despite this softening, activity remained steady, supported by selective buying from yards seeking to maintain operations.
Market participants in Alang noted that the overall sentiment remains cautiously positive, though the easing of steel prices has reduced the immediate urgency among recyclers to acquire tonnage. Demand from domestic steel mills has been fluctuating, creating uncertainty in pricing.
Container vessels were priced around USD 445 per LDT, while tankers fetched approximately USD 430 per LDT, and bulkers stood near USD 415 per LDT, marking a week-on-week decline of 1.15%.
Traders say that though offers have come off slightly, there is still an underlying buying appetite in the market. “The correction was expected,” one recycler said, adding that “the overall sentiment remains stable, and we might see renewed momentum once plate prices find a clear direction.”
The Indian rupee also experienced mild volatility, which influenced bidding behaviour during the week. With exchange rates fluctuating between ₹66.93 and ₹65.74, traders exercised caution while finalising deals.
Bangladesh: Improved Sentiment Boosts Market Confidence
In Bangladesh, the week brought a noticeable improvement in sentiment as buyers showed renewed enthusiasm for securing vessels. Although local steel prices remained largely unchanged, the increased activity from end-buyers provided a boost to overall market momentum.
Ship recyclers in Chattogram reported that the market had been relatively quiet in recent weeks, but stronger interest from major buyers helped lift confidence. “Even though fundamentals are yet to strengthen, the willingness to buy has improved,” said a local broker.
Prices remained stable, with container units at around USD 420 per LDT, tankers at USD 405 per LDT, and bulkers at USD 385 per LDT. While no significant upward change was recorded, the steady levels indicate a potential turnaround if the positive sentiment continues.
Analysts believe that a combination of improving local demand and reduced competition from India may help Bangladesh recover its position as a leading recycling destination in the coming weeks.
Pakistan: Activity Slows Amid Flood Impact, But Optimism Persists
Pakistan’s ship recycling market maintained a fair level of activity despite the challenges posed by recent floods in several regions. The disruptions affected logistics and slowed operations temporarily, leading to a slight reduction in buying momentum. However, appetite for new tonnage has not disappeared, and overall sentiment remains cautiously optimistic.
Buyers in Gadani are continuing to assess opportunities in the market, supported by the relative stability of local steel prices. This week, rates stood at USD 425 per LDT for containers, USD 410 per LDT for tankers, and USD 405 per LDT for bulkers, showing no change from the previous week.
Industry sources say that although floods have slowed physical activity, the underlying fundamentals remain intact. “We are facing short-term challenges, but demand will remain,” said one recycler, emphasising that the local market remains resilient even in difficult circumstances.
Turkiye: Market Holds Steady Despite Drop in Import Prices
In Turkiye, import scrap prices dropped by USD 2 during the week, but this marginal decline did not translate into any noticeable movement in the local ship recycling market. The overall conditions remained stable, with no significant changes in demand or buyer sentiment.
Prices for ships held firm, with container units fetching USD 270 per LDT, tankers at USD 260 per LDT, and bulkers at USD 250 per LDT. Turkish recyclers remain focused on steady operations amid a relatively balanced domestic steel market.
Local observers expect the situation to remain unchanged in the short term, as both domestic demand and international supply of tonnage appear stable.
Crude Oil and Exchange Rates
Energy prices also reflected a mixed trend this week. Brent crude closed slightly higher at USD 88.27, up by 0.16, while WTI crude gained 0.26 to reach USD 121.44. Exchange rates across major currencies remained volatile, influencing trade margins and import costs in the subcontinent’s recycling hubs.
Outlook: Stability with a Hint of Caution
Overall, the global ship recycling market appears to be in a phase of cautious stabilisation. While India saw a mild correction and Pakistan faced temporary disruptions, Bangladesh’s renewed buyer confidence and Turkiye’s steady conditions suggest a balanced regional picture.
Market participants expect modest fluctuations in the coming weeks, depending on steel price trends, currency stability, and the flow of new tonnage to yards. For now, steady demand and cautious optimism continue to define the sentiment across South Asia’s key recycling centers.
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