GLOBAL TONNAGE CRUNCH DRIVES INTENSE SCRAP DEMAND; BANGLADESH LEADS SUB-CONTINENT ACTIVITY : BEST OASIS
Bhavnagar / Dubai — Global ship recycling yards are grappling with an acute supply shortage as vessel availability remains severely constrained across major demolition destinations, according to the latest weekly market intelligence report from leading cash buyer Best Oasis Limited.
Despite persistent currency volatility and pressure from a strengthening US dollar, buying interest across the Indian Subcontinent and Türkiye has held firm, with shipbreakers aggressively competing for the scarce tonnage entering the market.
Bangladesh Surges on HKC Compliance
Bangladesh emerged as the most active destination this week, supported by firm market sentiment and top-tier pricing. Demand in Chittagong has been propelled not merely by domestic scrap consumption, but critically by yards moving to secure ships compliant with the Hong Kong International Convention (HKC) for the Safe and Environmentally Sound Recycling of Ships.
Recyclers unable to find alternative tonnage have stepped up procurement to keep operations viable. Pricing in Bangladesh led the sector, commanding $520 per Light Displacement Tonnage (LDT) for container vessels, $510/LDT for tankers, and $485/LDT for bulk carriers. Notably, the market secured deliveries of the LPG tanker SC Discovery XLVI (2,427 LDT) and passenger/cargo vessel Haku (11,304 LDT).
Forex Headwinds Hit Indian Pricing Sentiment
At India’s premier recycling hub in Alang, market conditions remained broadly unchanged week-on-week, though domestic recyclers faced margin pressure due to the Indian rupee weakening against the greenback to 96.72.
Notwithstanding the currency friction, appetite in Alang remains robust. With virtually no new large tonnage entering the market beyond one or two smaller craft, demand continues to significantly outstrip supply. Headline transactions included the delivery of the high-displacement LNG carrier LNG Kano (31,022 LDT) alongside the smaller EVS Fishing vessel (1,226 LDT). Indian indicative scrap levels held steady at $475/LDT for containers, $445/LDT for tankers, and $430/LDT for bulk carriers.
Pakistan Constrained; Türkiye Displays Regional Stability
Across the border in Gadani, Pakistani shipbreakers retained steady purchasing interest but remained disadvantaged in competitive bidding against Bangladeshi buyers. Pakistani rates closed the week at $500/LDT for containers and $490/LDT for tankers, held back primarily by the overall tonnage deficit.
In Aliaga, Türkiye, the recycling sector demonstrated notable stability despite the sustained depreciation of the Turkish lira (trading at 49.24 per USD). Turkish yards continue to operate selectively, focusing on high-specification regional vessels and tonnage mandated to comply with European Union Ship Recycling Regulations (EUSR). Turkish prices held at $300/LDT for containers and $290/LDT for tankers, with the chemical tanker Bandirma (2,985.96 LDT) changing hands on an “as-is” Istanbul delivery basis.
Key Market Indicators
Recycling Scrap Prices (USD / LDT)
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Bangladesh (Firm): Container: $520 | Tanker: $510 | Bulker: $485
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Pakistan (Moderate): Container: $500 | Tanker: $490 | Bulker: $480
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India (Moderate): Container: $475 | Tanker: $445 | Bulker: $430
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Türkiye (Moderate): Container: $300 | Tanker: $290 | Bulker: $280
Imported Steel Scrap (HMS 1&2 / Shredded in USD)
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India: $405 / $410 (Unchanged)
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Bangladesh: $410 / $420 (Unchanged)
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Pakistan: $410 / $420 (Unchanged)
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Türkiye: $395 / $410 (-1.83%)
Energy & Currencies
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Brent Crude: $102.72/bbl (+2.99)
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WTI Crude: $90.33/bbl (+0.83)
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Foreign Exchange (per USD): INR: 96.72 | BDT: 123.01 | PKR: 277.00 | TRY: 49.24
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