Alang Ship Recycling Yards Rebound Post-Diwali as Global Scrap Prices Edge Up: BEST OASIS

Alang Ship Recycling Yards Rebound Post-Diwali as Global Scrap Prices Edge Up: BEST OASIS

BHAVNAGAR, Nov 15: The Indian ship recycling sector at Alang has begun regaining momentum following the five-day Diwali holiday break, driven by recovering local steel demand and firmer price indications, according to the latest weekly market report from Best Oasis, one of the world’s leading cash buyers of vessels for recycling.

In its market assessment for the week ending November 13, Best Oasis noted that Indian recyclers are returning to normal operations with renewed buying interest. Vessel price indications in India jumped 4.35 per cent week-on-week—the strongest gain among major global recycling destinations—reaching USD 505 per light displacement ton (LDT) for containers, USD 475/LDT for tankers, and USD 460/LDT for bulkers. Overall sentiment in the domestic market remains positive, supported by a strengthening Indian Rupee, which gained 0.24 points to trade at 94.23 against the US Dollar.

Regional Market Roundup

• Bangladesh: Market sentiment remains cautiously positive as recyclers continue to offer the highest global rates—USD 575/LDT for containers, USD 565/LDT for tankers, and USD 540/LDT for bulkers, up 1.82 per cent from last week. However, a recent softening in local steel market conditions has begun putting mild downward pressure on fresh price indications, even as the Bangladeshi Taka firmed to 124.40 per USD.

• Pakistan: Activity at Gadani remains largely unchanged and subdued. While buyers are active, a shortage of competitively priced tonnage has prompted several recyclers to adopt a wait-and-see approach in anticipation of a price correction. Vessel indications held steady at USD 505/LDT for containers, USD 500/LDT for tankers, and USD 480/LDT for bulkers, with the Pakistani Rupee largely flat at 276.59 per USD.

• Türkiye: The Aliaga recycling market remains soft and uncompetitive for conventional tonnage, with offers stagnant at USD 300/LDT for containers, USD 290/LDT for tankers, and USD 280/LDT for bulkers. Recyclers continue to grapple with weak domestic steel demand, high financing costs, and ongoing depreciation of the Turkish Lira, which slipped 0.29 points to 50.34 against the Dollar. Nevertheless, Türkiye maintains a niche advantage in recycling EU-linked vessels due to its proximity to Europe and strict environmental compliance.

Steel Scrap & Macroeconomic Indicators

Local scrap prices firmed across the Indian subcontinent over the week. Prices for HMS 1&2 (80:20) and shredded scrap rose to USD 405 and USD 415 per ton in India (+1.23 per cent), USD 415 and USD 425 in Bangladesh (+1.82 per cent), and USD 410 and USD 420 in Pakistan (+1.22 per cent). Turkish scrap prices remained unchanged at USD 405 and USD 420. Meanwhile, global crude oil prices saw a notable pullback, with Brent crude dropping USD 3.60 to USD 96.14 per barrel and WTI crude falling USD 3.04 to USD 88.48.

Weekly Market Snapshot

Notable Vessel Sales

Alang secured two confirmed deliveries during the week, while a specialized offshore unit changed hands on an “as-is” basis:

• Stolt Confidence (Motor Tanker, 12,915 LDT) – Sold for delivery to Alang, India (price undisclosed).

• Sencer 1 (Multi-Purpose Vessel, 892 LDT) – Sold for delivery to Alang, India (price undisclosed).

• Grand Banks (Converted Mining Vessel, 6,369.23 LDT) – Sold “as-is” in South Africa at USD 610/LDT.

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