Global Ship Recycling Markets Show Mixed Signals as Currency Pressures and Limited Tonnage Shape Sentiment: BEST OASIS
Global ship recycling markets presented a mixed picture this week, according to the latest weekly report from BEST OASIS, one of the world’s leading cash buyers for vessels headed for demolition. While buyer appetite remained visible across major recycling destinations, currency movements, regulatory developments, and a continued shortage of recycling candidates influenced sentiment and pricing trends.
India: Currency Headwinds Temper Market Momentum
In India, market sentiment softened toward the end of the week as a firmer U.S. dollar and a weakening Indian rupee weighed on buyer confidence. Reports surrounding potential Russia–U.S. trade developments, including renewed emphasis on the U.S. dollar as a key trading currency, have altered market expectations and may keep the dollar strong in the near term, adding further pressure on local recyclers’ margins.
Despite these challenges, tanker vessels continue to flow steadily into the recycling system, reinforcing India’s position as the primary workable destination for such units. However, fresh guidance from the Directorate General of Shipping (DGS) could restrict arrivals of sanctioned tankers. Stricter requirements relating to vessel flag, protection and indemnity (P&I) insurance cover, and class compliance may limit eligibility, potentially reducing volumes in the weeks ahead.
Indicative prices in India reflected the softer tone, with container vessels assessed around USD 425 per LDT, tankers near USD 410 per LDT, and bulkers at about USD 395 per LDT, marking a marginal week-on-week decline.
Bangladesh: Buoyant but Capacity-Constrained
Bangladesh remained the most buoyant market this week, with buyers continuing to display aggressive interest. However, market participants are increasingly questioning how long this momentum can be sustained, as yard capacity is gradually filling up. With limited space available, recyclers may soon become more selective unless fresh capacity opens or deliveries slow.
Adding a layer of caution is the approach of national elections. Market sentiment remained watchful, as the election outcome is expected to influence near-term confidence and broader financial conditions, particularly access to credit and banking liquidity. Still, pricing levels held firm, with containers at around USD 435 per LDT and tankers at USD 425 per LDT.
Pakistan: Firm but Narrow Participation
Pakistan’s ship recycling market stayed firm, supported by selective buying interest from a small group of active participants. Activity remains concentrated among a limited number of Hong Kong Convention (HKC)-approved yards with the necessary permissions to recycle vessels. This restricted base continues to limit broader market participation.
As a result, while pricing levels are competitive—containers around USD 435 per LDT and bulkers near USD 410 per LDT—the market cannot be relied upon as a consistent absorber of large volumes of tonnage. Any disruption among approved yards could quickly reduce effective demand.
Turkiye: Stable and Unchanged
The Turkish market remained stable this week, largely mirroring last week’s conditions both domestically and on import. Overall sentiment and activity were steady, with no major developments to materially alter market direction. Prices held flat, with containers near USD 290 per LDT and bulkers around USD 270 per LDT.
Broader Trends: Limited Supply and Tight Margins
Across all recycling destinations, a notable shortage of fresh recycling candidates persists. This scarcity continues to define market dynamics, forcing buyers to decide whether to pursue available units at tighter margins to keep yard activity moving, or to adopt a more selective approach until supply and pricing conditions improve.
Steel prices and exchange rates showed minimal week-on-week movement, offering little additional support. Benchmark HMS 1&2 (80:20) prices were largely unchanged across India, Bangladesh, Pakistan, and Turkiye.
This week’s sales activity underscored the selective nature of the market, with a handful of vessels—including tankers, bulkers, and a PCC—sold for recycling across Alang and Chittagong, while several prices remained undisclosed.
As regulatory scrutiny increases and currency volatility persists, industry participants expect ship recycling markets to remain finely balanced, with sentiment highly sensitive to macroeconomic signals and the flow of end-of-life tonnage in the weeks ahead.
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