Bangladesh Surges as Tonnage Shortage and EU Scrutiny Define Global Ship Recycling: Best Oasis

Bangladesh Surges as Tonnage Shortage and EU Scrutiny Define Global Ship Recycling: Best Oasis

Global ship recycling markets experienced divergent trends this week, marked by strong buyer appetite in Bangladesh, subdued yet stable conditions in India, and persistent tonnage scarcity across all major destinations. According to the latest weekly report from Best Oasis, one of the world’s leading cash buyers for ships heading for demolition, a severe shortage of recycling candidates continues to restrict transaction volumes even as regional pricing sentiment firms up.

Regional Market Analysis

Bangladesh: Firmer Pricing and Robust Appetite

Bangladesh emerged as the clear outperformer of the week, with demolition recyclers demonstrating aggressive buying interest. Market sentiment turned notably bullish following a landmark transaction: the bulk carrier OCEANIC STAR (9,818 LDT) was sold on a delivered Chattogram basis at USD 545 per LDT.

This benchmark sale pushed prevailing market price indications up by 6.80% week-on-week:

• Containers: USD 565/LDT

• Tankers: USD 555/LDT

• Bulkers: USD 530/LDT

Despite firm buyer momentum, recyclers continue to face an acute lack of available tonnage, preventing broader trade volumes from materializing.

India: Festive Quiet as Recyclers Eye EU Vote

Activity across Indian yards remained relatively subdued due to the festive period. While overall underlying sentiment remains stable with ongoing buying interest, trading volumes were constrained by sparse candidate availability.

Recyclers in Alang are closely watching Brussels, where the European Parliament’s Environment Committee is scheduled to vote on November 4, 2026, on a motion opposing the inclusion of two Indian ship recycling facilities on the EU-approved list. Price levels held unchanged over the week:

• Containers: USD 485/LDT

• Tankers: USD 455/LDT

• Bulkers: USD 440/LDT

Pakistan: Inactive Domestic Demand Weighs on Gadani

In Pakistan, buyer inquiries persisted, but local transactions remained stifled by an extreme lack of tonnage alongside continued stagnation in domestic finished steel demand.

During the week, the bulk carrier SPARROW (5,000 LDT) was delivered to Gadani on undisclosed terms (with DA on buyer’s account). Scrap prices held flat week-on-week:

• Containers: USD 505/LDT

• Tankers: USD 495/LDT

• Bulkers: USD 485/LDT

Türkiye: Aliaga Yards Remain Selective

Turkish ship recyclers maintained a steady course amid limited trading. While the Turkish Lira remains weak against the US Dollar, currency movements did not exert immediate downward pressure on domestic recycling quotations.

Ship supply into Aliaga remains heavily tied to European regulatory frameworks and regional vessel positioning. Yards remain selective, focusing their bids on well-positioned, commercially viable units. Local recycling values remained flat:

• Containers: USD 300/LDT

• Tankers: USD 290/LDT

• Bulkers: USD 280/LDT

Market Data Overview

Ship Recycling Price Indications (USD / LDT)

Local Scrap Steel Prices (HMS 1&2 80:20 & Shredded)

Foreign Exchange Rates (Against USD)

• USD / INR: 94.96 (down 0.02 vs. 94.94 last week)

• USD / BDT: 124.15 (down 0.52 vs. 123.63 last week)

• USD / PKR: 276.70 (gained 0.12 vs. 276.82 last week)

• USD / TRY: 49.93 (down 0.21 vs. 49.72 last week)

Energy Benchmarks

• Brent Crude: USD 116.50/bbl (+$2.47 from 114.03)

• WTI Crude: USD 103.43/bbl (+$2.89 from 100.54)

Reported Demolition Sales

• OCEANIC STAR | Bulker | 9,818 LDT | Delivered Chattogram, Bangladesh | USD 545/LDT

• SPARROW | Bulker | 5,000 LDT | Delivered Gadani, Pakistan | Undisclosed (DA on Buyer’s Account)

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