Indian Ship Recycling Market Stays Active as Specialized Tonnage Supports Demand: BEST OASIS
The Indian ship recycling market remained active during the latest week, with demand particularly strong for specialised vessels such as reefers and passenger ships, according to BEST OASIS’s latest weekly market assessment, one of the world’s leading cash buyers of ships destined for recycling.
While activity in India continues to be supported by select vessel categories, the market remains under pressure due to a significant price gap relative to competing recycling destinations. Local steel prices have declined from the previous week, adding to the challenges faced by Indian recyclers. Nevertheless, recent transactions involving a passenger vessel and a reefer were concluded at strong levels, highlighting continued buyer interest in specialized tonnage.
According to BEST OASIS, India is currently finding it difficult to compete for conventional recycling tonnage because Pakistan is offering prices around $30-$40 per light displacement tonne (LDT) higher, while Bangladesh is approximately $80-$90 per LDT above Indian levels. The substantial price difference continues to influence owners’ recycling decisions and is limiting the flow of conventional bulkers, tankers and container vessels towards Indian yards.
Despite these challenges, India continues to receive specialized vessels as well as sanctioned tonnage, providing some support to the domestic recycling industry.
The indicative ship recycling prices quoted in the report show India at about $460 per LDT for containers, $430 for tankers and $415 for bulkers. Bangladesh was assessed at $510 per LDT for containers, $500 for tankers and $455 for bulkers. Pakistan remained stronger at $490, $480 and $470 per LDT respectively. Türkiye continued to trade at substantially lower levels, with container, tanker and bulker prices around $285, $275 and $265 per LDT.
Bangladesh Demand Remains Strong
Bangladesh continued to record active market conditions, although sentiment has moderated compared with the stronger levels witnessed around two weeks earlier. Local prices also eased slightly during the latest week.
Despite the softer tone, recycling prices are being maintained for the time being. Market participants, however, will be watching closely to determine whether the decline in local steel prices becomes more pronounced in the coming week.
Demand remains particularly strong for mid-sized and large vessels. Buyers are actively searching for suitable tonnage, keeping competition for attractive ships relatively high. Bangladesh’s ability to offer comparatively strong recycling prices continues to give its yards an advantage when competing for conventional vessels.
Pakistan Buyers Step Up Activity
Pakistan also maintained a strong market, with buyers continuing to seek additional tonnage to meet high requirements across the recycling sector.
A major factor supporting demand is the sharp reduction in steel imports from Iran. With imported steel availability falling considerably, domestic requirements are increasingly being met through ship recycling. This has strengthened buyers’ appetite for vessels available for demolition.
BEST OASIS expects Pakistani buyers to remain active in the coming week as they continue searching for suitable vessels. The combination of strong steel demand and reduced imports is providing additional support to the country’s ship recycling market.
Türkiye Market Remains Stable
Türkiye’s ship recycling market remained comparatively weak during the week, although overall conditions were stable. There was no significant change in market sentiment, while buyer activity and underlying fundamentals remained broadly similar to the previous week.
Market participants are now looking for signs of improvement in activity or any shift away from the prevailing stable conditions during the coming week.
Steel and Commodity Markets
The broader commodities market also recorded notable movements. Brent crude rose by $4.48 to $86.65, from $82.17 in the previous week, while West Texas Intermediate (WTI) crude increased by $3.80 to $80.91 from $77.11.
Exchange-rate movements were mixed. The US dollar stood at 95.51 Indian rupees, compared with 95.19 previously. Against the Bangladeshi taka, the dollar was at 122.69 compared with 123.99, while against the Pakistani rupee it stood at 277.62 compared with 277.97. The US dollar was quoted at 47.87 Turkish lira, compared with 47.70 in the previous week.
HMS 1&2 (80:20) prices were assessed at $385 per tonne in India and Bangladesh, $390 in Pakistan and $377 in Türkiye. Shredded steel was quoted at $395 in India, Bangladesh and Pakistan, while Türkiye stood at $397.
Selected Vessel Sales
The week’s reported transactions included EN JIE 7, a 3,845-LDT bulker delivered in China, while STAR, LADY JASMINE and GORDION, all multiple-purpose vessels, were delivered at Aliaga, Türkiye. The vessels had LDTs of 2,160, 2,850 and 2,115 respectively, with sale prices undisclosed.
The 18,500-LDT maintenance platform FPF 1 was sold on a delivered basis in Norway, also at an undisclosed price. Meanwhile, the 8,274-LDT tanker GREEN STARS was sold on an as-is basis at Belawan, Indonesia, for $500 per LDT.
Overall, the latest weekly report underlines a divided South Asian recycling market. India remains active in specialized segments but faces a substantial price disadvantage for conventional tonnage, while Bangladesh and Pakistan continue to attract strong buyer interest. Türkiye, meanwhile, remains stable but subdued. The coming week is expected to provide further indications of whether steel prices and vessel demand will alter the competitive balance among the major recycling destinations.
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