Ship Recycling Markets Show Mixed Signals as India Stabilises- Bangladesh Softens: BEST OASIS
Global ship recycling markets presented a mixed and cautious picture this week, according to the latest weekly ship recycling report released by BEST OASIS, one of the leading cash buyers of vessels destined for demolition. While sentiment across South Asia remained uneven, early signs of stabilisation in India and improved confidence in Pakistan offered some support against continued softness in Bangladesh and a watchful, steady tone in Türkiye.
India: Softness Eases Toward Week-End
The Indian ship recycling market trended softer through most of the week, with recyclers facing pressure despite the recent introduction of new import duties aimed at protecting domestic steelmakers. According to BEST OASIS, these policy measures did little to immediately lift market sentiment, as overall demand conditions remained subdued.
However, toward the latter part of the week, early signs of stability began to emerge. Market participants reported a slight improvement in sentiment, suggesting that prices may be approaching a near-term floor. Recyclers continue to maintain a bullish outlook over the medium term, supported by expectations of tighter steel supply and improved domestic demand once current uncertainties ease.
A defining feature of the Indian market this week was the limited availability of tonnage. While buyer demand remains present, the clear dearth of vessels entering the recycling market restricted activity and prevented aggressive price competition. This lack of supply has helped prevent a sharper correction in pricing, even as sentiment softened earlier in the week.
Regulatory developments also remained in focus. The Recycling Code 2026 has now been received and is currently being reviewed for implementation. Industry participants are awaiting further clarity on how the new code will be rolled out and what operational or compliance changes it may require. BEST OASIS indicated it would provide a more detailed overview of the Recycling Code and related domestic developments in due course.
Bangladesh: Demand Muted Ahead of Elections and Ramadan
Bangladesh’s ship recycling sector remained subdued, with overall activity muted throughout the week. Demand was largely confined to smaller units, while appetite for larger tonnage stayed limited. Local price levels softened further, reflecting cautious buyer sentiment, even as melting scrap values remained broadly stable.
Buyer participation was thin and noticeably less aggressive compared to recent weeks. This lack of urgency has kept transactions at a minimum and reinforced the softer market tone. Looking ahead, upcoming February elections and Ramadan-linked seasonality are expected to keep March trading quiet.
Market participants anticipate that conditions may only begin to improve after Ramadan. BEST OASIS noted that two to three yards are expected to become operational in the coming period, which could provide some support to market engagement once seasonal and political factors subside.
Pakistan: Confidence Improves on Import Constraints
In contrast to its regional peers, Pakistan recorded a more positive sentiment this week. The improvement was largely driven by reduced availability of competitively priced imported material. Unofficial imports have eased, while official import flows have temporarily paused, tightening supply in the domestic market.
This shift has boosted recyclers’ confidence, with buyers appearing more comfortable engaging compared to recent weeks. As a result, Pakistan showed signs of firmer pricing and improved willingness to transact, even as broader regional conditions remained mixed.
Türkiye: Modest Import Gains, Local Market Steady
Türkiye’s ship recycling market saw a modest improvement of around USD 3 on the import side during the week. Despite this uptick, local market pricing remained unchanged, and the domestic tone stayed largely steady.
Activity in Türkiye continues to be intermittent, with buyers and sellers adopting a wait-and-see approach. Market participants are closely monitoring whether the recent improvement in import pricing will translate into any tangible movement in the local market in the coming week.
Steel, Currency and Energy Indicators
Global indicators provided a mixed backdrop. Crude oil prices showed gains, with Brent and WTI both posting week-on-week increases of over 2%, adding marginal cost pressure across industrial sectors.
Currency movements were varied. The Indian rupee weakened slightly against the US dollar, with USD/INR moving to 90.76 from 90.09 the previous week. The Bangladeshi taka also saw a marginal decline, while the Pakistani rupee strengthened notably, improving local buying power for recyclers. The Turkish lira edged weaker on a week-on-week basis.
International scrap prices recorded modest gains. HMS 1&2 (80:20) prices rose across all major markets, reaching around USD 365 per tonne in India, Bangladesh and Pakistan, while Türkiye traded higher at approximately USD 376. Shredded scrap prices also edged up, reflecting incremental improvements in the global scrap complex.
Ship Recycling Prices and Sales
In the ship recycling sector, India remained firm, with container vessels quoted around USD 420 per LDT, tankers at USD 405 per LDT and bulkers at USD 390 per LDT, marking a week-on-week improvement. Bangladesh and Pakistan remained softer, while Türkiye continued to trail significantly lower.
Several vessels were sold during the week, including bulkers, reefers and specialised carriers, with deliveries spread across Alang in India and Aliaga in Türkiye. Most sale prices were undisclosed, though deals reflected prevailing regional sentiment and selective buyer appetite.
Overall, BEST OASIS concluded that while near-term conditions remain challenging, particularly in Bangladesh, early stabilisation in India and improved confidence in Pakistan could set the stage for a more balanced market once seasonal and political headwinds ease.
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