Global Ship Recycling: Indian Market Retreats Sharply Amid Softening Steel Prices; Bangladesh and Pakistan Hold Steady : BEST OASIS
MUMBAI / BHAVNAGAR — The global ship recycling sector witnessed contrasting regional trends this week, marked by a steep correction in Indian demolition rates, while neighboring South Asian destinations held ground despite softening domestic fundamentals, according to the latest weekly market report released by leading cash buyer Best Oasis.
Indian yards, centered around Alang in Gujarat, experienced a notable pullback from recent price spikes, confirming industry expectations that recent gains were cyclical rather than the onset of an enduring rally. Local vessel scrap offerings dropped by 2.17% week-on-week, settling at $475/LDT for containers, $445/LDT for tankers, and $430/LDT for bulk carriers.
“The Indian recycling market came down sharply during the week, with local levels retreating significantly from recent highs, in line with our earlier view that the upward movement could prove temporary rather than develop into a sustained recovery,” Best Oasis noted. Domestic steel price softening has squeezed breaker margins, prompting buyers to adopt a cautious posture toward fresh tonnage.
On the structural front, the report highlighted a positive regulatory shift: the Gujarat Maritime Board (GMB) introduced an updated policy framework aimed at bolstering development, modern infrastructure, and long-term compliance across the domestic ship recycling industry.
Regional Market Rundown
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Bangladesh (Steady, Supply-Constrained): Chittagong scrap yards maintained steady headline pricing, even as domestic finished steel prices eased. Breakers continue to face a scarcity of suitable demolition candidates, keeping offers relatively competitive. Indicative rates stood firm at $520/LDT for containers, $510/LDT for tankers, and $485/LDT for bulkers.
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Pakistan (Cautious Appetite): At Gadani, recyclers operated under margin pressure due to softening local plate values. However, vessel offer levels remained unchanged week-on-week at $500/LDT (containers), $490/LDT (tankers), and $480/LDT (bulkers). Broader import flows—notably Hot Rolled (HR) Coils—continue to satisfy downstream steel demand, balancing the shortfall in ship-generated scrap. A steady Pakistani Rupee provided background support.
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Türkiye (Stable at Lower Tiers): European and Mediterranean recycling activity in Aliaga remained muted, with prices holding at $295/LDT (containers), $285/LDT (tankers), and $275/LDT for bulk carriers. Modest upticks in imported scrap and local steel values have yet to lift recycling purchase levels.
Ship Recycling Rates & Scrap Matrix
| Recycling Hub | Market Tone | Container ($/LDT) | Tanker (/LDT)∣Bulker(/LDT) | W-o-W Change | HMS 1&2 ($/T) | Shredded Scrap ($/T) |
| India | Slow | $475 | $445 | $430 | -2.17% | $395 |
| Bangladesh | Moderate | $520 | $510 | $485 | 0.00% | $400 |
| Pakistan | Moderate | $500 | $490 | $480 | 0.00% | $400 |
| Türkiye | Moderate | $295 | $285 | $275 | 0.00% | $405 |
Tonnage Movement & Recent Sales
Overall sales activity remained light across major waterfronts, with shipowners securing firm terms only on select, well-calculated deals:
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MAESTRO 1 (Bulk Carrier | 5,142 LDT): Delivered to Gadani, Pakistan at $507/LDT.
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NEPT (Reefer | 3,040 LDT): Delivered to Chittagong, Bangladesh at an undisclosed price.
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BAHAR (Multi-Purpose Vessel | 1,903 LDT): Delivered to Aliaga, Türkiye at an undisclosed price.
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ALEVTIN SHELKOVNIKOV (Bulk Carrier | 1,799 LDT): Delivered to Aliaga, Türkiye at an undisclosed price.
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FRIGG SYDFYEN (Passenger/Car Ferry | 887 LDT): Delivered to Denmark at an undisclosed price.
Macro & Currency Indicators
Energy commodities delivered mixed directional cues. Brent Crude gained $2.20/bbl to settle in the $103.16–$105.36 range, whereas West Texas Intermediate (WTI) slipped $8.25/bbl, moving from $101.05 down to $92.80.
In foreign exchange markets, the Indian Rupee marginally firmed to 95.83 per USD (gain of 0.07), while the Pakistani Rupee appreciated by 1.92 to 277.06 per USD. The Bangladesh Taka traded softer at 123.16 per USD (down 0.33), and the Turkish Lira eased to 48.94 per USD (down 0.18).
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