Supply Crunch Drives Tonnage Values Up Across Major Breaking Hubs; Geopolitical Shifts Stir Markets: BEST OASIS

Supply Crunch Drives Tonnage Values Up Across Major Breaking Hubs; Geopolitical Shifts Stir Markets: BEST OASIS

CHITTAGONG / ALANG — World’s leading cash buyer for ships sending for recycling, BEST OASIS in their weekly ship recycling market report opined that, Global ship recycling yards experienced steady to firm buying interest this week, propelled by firming scrap offers and persistent regional tonnage shortages, even as macroeconomic volatility and shifting border dynamics reshaped local trading fundamentals.

Across key South Asian and Mediterranean destinations, vessel availability remains historically constrained, prompting cash buyers and recyclers to raise price indications across several segments, despite selective purchasing behaviour.

India: Strong Domestic Steel Absorption Anchors Confidence

The Indian ship recycling market held firm through the week, underpinned by buoyant local steel consumption and steady domestic demand for secondary steel products.

Recycling yards in Alang continue to grapple with an acute scarcity of candidate tonnage, with very few fresh vessels being circulated for direct sale. However, market participants are keenly watching developments surrounding a recent U.S. government circular regarding the potential removal of certain OFAC sanctions on selected tonnage. If formalized, the move could open previously restricted recycling avenues and inject much-needed volume into domestic yards.

Indicative recycling prices in India advanced by 2.22% week-on-week, with container units quoted at $485/LDT, tankers at $455/LDT, and bulkers at $440/LDT.

Bangladesh: Persistent Buyer Appetite Amid Subdued Flows

In Bangladesh, overall market momentum remained relatively soft, yet underlying buyer appetite persists unabated. Recyclers in Chattogram remain eager to replenish inventory, but activity continues to be throttled by an extreme lack of workable tonnage.

Despite a cautious broader trading tone, domestic recyclers retained the regional price lead. Bangladeshi rates gained 1.98% week-on-week, placing container ships at $530/LDT, tankers at $520/LDT, and bulk carriers at $495/LDT. Bangladesh also accounted for the lion’s share of reported sales this week.

Pakistan: Iran Border Closure Lifts Domestic Recycled Steel Demand

The Pakistani market recorded mixed structural movements over the past week, yet cash buyers demonstrated solid liquidity and strong purchasing intent.

A pivotal development came via reports of the full closure of the Iran–Pakistan border, which abruptly halted the flow of imported Iranian steel billets and rebar following weeks of curtailment. The supply vacuum created by this border blockade has provided an immediate domestic catalyst: local re-rolling mills are turning back to ship scrap to satisfy domestic steel demand.

Pakistani demolition quotes rose 2.06% week-on-week, reaching $505/LDT for containers, $495/LDT for tankers, and $485/LDT for bulkers.

Türkiye: Selective Buying Prevails in Aliaga

The Turkish recycling sector remained largely range-bound with subdued trading activity. Despite ongoing weakness in the Turkish lira (TRY 49.72 against the greenback), prices held flat week-on-week.

Aliaga yards remain reasonably occupied but highly selective, directing bids primarily towards EU-compliant or regional candidates with favorable positioning. Turkish price levels closed steady at $300/LDT for containers, $290/LDT for tankers, and $280/LDT for bulkers.

Energy & Commodity Indicators

Crude benchmarks posted noticeable weekly gains, influencing bunker expenditure and repositioning economics worldwide:

• Brent Crude: Rallied +$8.64/bbl, moving from $105.39 to $114.03/bbl.

• WTI Crude: Gained +$3.13/bbl, trading higher from $97.41 to $100.54/bbl.

In imported ferrous scrap, HMS 1&2 (80:20) and Shredded Scrap benchmark prices held stable across all key destinations:

• India: HMS 1&2 at $400/t | Shredded at $405/t (0% change)

• Bangladesh: HMS 1&2 at $400/t | Shredded at $405/t (0% change)

• Pakistan: HMS 1&2 at $405/t | Shredded at $410/t (0% change)

• Türkiye: HMS 1&2 at $395/t | Shredded at $410/t (0% change)

Foreign Exchange Snapshot

• USD / INR: 94.94 (INR gained 0.06 vs prior week’s 95.00)

• USD / BDT: 123.63 (BDT slipped 0.46 vs prior week’s 123.17)

• USD / PKR: 276.82 (PKR gained 0.12 vs prior week’s 276.94)

• USD / TRY: 49.72 (TRY weakened 0.21 vs prior week’s 49.51)

Weekly Fixtures & Reported Sales

Transaction activity reflected a mix of regional bulker tonnage delivered to Chattogram alongside specialist offshore and refrigerated units concluded on an as-is basis:

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