Global Ship Recycling Market Diverges: Indian Sentiment Firms on Stronger Rupee While Pakistan Falters Under Iranian Supply Influx : BEST OASIS

Global Ship Recycling Market Diverges: Indian Sentiment Firms on Stronger Rupee While Pakistan Falters Under Iranian Supply Influx : BEST OASIS

The global ship recycling landscape presented a contrasting picture over the past week as domestic currency movements, scrap availability, and regional supply shocks drove diverging trends across major demolition hubs, according to the latest weekly market report issued by leading cash buyer Best Oasis.

While Indian yards saw a resurgence in sentiment bolstered by a firmer rupee, Bangladeshi recyclers continued to battle severe tonnage shortages, and the Pakistani market softened under price pressure triggered by cross-border imports from Iran.

India: Currency Gains and Steel Sales Revive Yard Appetite

India’s ship recycling sector gained noticeable momentum, largely propelled by the appreciation of the Indian rupee against the US dollar following targeted interventions and regulatory measures by the Reserve Bank of India (RBI). The domestic currency strengthened to 95.00 per USD from 96.72 in the preceding week, giving recyclers enhanced purchasing power for US dollar-denominated assets.

Coupled with a pickup in local finished steel sales, yard operators in Alang experienced an uplift in confidence. Demolition price indications held steady week-on-week, with Container vessels commanding 475 USD/LDT, Tankers at 445 USD/LDT, and Bulkers at 430 USD/LDT, consolidating India’s market stance as firm despite imported scrap prices easing slightly to 400 USD/ton for HMS 1&2 and 405 USD/ton for shredded.

Bangladesh: Relentless Tonnage Squeeze Keeps Bids Competitive

In Bangladesh, recycler demand remained robust, but activity continues to be strangled by a persistent shortage of beaching candidates. The supply of end-of-life tonnage remained nearly dry, forcing cash buyers and local yards to bid aggressively on the few available parcels to keep facilities operational.

Offer prices in Chattogram remained the highest across the Indian Subcontinent, holding flat week-on-week at 520 USD/LDT for Containers, 510 USD/LDT for Tankers, and 485 USD/LDT for Bulkers. The tight market dynamics were reflected in concluded deals, with the general cargo vessel Fotex (2,594 LDT) securing a strong delivered price of 530 USD/LDT.

Pakistan: Influx of Iranian Cargo and Weak Demand Weaken Sentiment

Pakistan stood out as the sole subcontinent market registering outright declines. Buying interest in Gadani softened substantially as domestic re-rolling mills saw weak offtake, aggravated by a surge of cheap steel and scrap arriving from neighboring Iran. The supply glut drove local ship plate, scrap, and wire rod prices down by approximately USD 25–30 per ton.

Reflecting this local sluggishness, demo price assessments dropped by roughly 1.02% week-on-week to 495 USD/LDT for Containers, 485 USD/LDT for Tankers, and 475 USD/LDT for Bulkers. In a notable market development, a damaged tanker reportedly attacked in the Strait of Hormuz entered the recycling circuit this week, drawing attention across regional desks.

Türkiye: Import Scrap Softens While Domestic Yards Hold Ground

At Aliaga, Turkish recyclers navigated a decline of around USD 9 per ton in import scrap prices, yet local market fundamentals held steady. Domestic vessel price levels showed zero net change, holding at 300 USD/LDT for Containers, 290 USD/LDT for Tankers, and 280 USD/LDT for Bulkers. The Turkish lira softened marginally to 49.51 per USD, while local yards absorbed selective regional tonnage, including the passenger/car ferry Aeolos Kenteris II (1,227 LDT).

Energy & Currency Dashboard

• Crude Oil: Energy benchmarks registered sharp gains across the board. Brent crude advanced +2.67 to close at 105.39 USD/bbl (up from 102.72), while WTI crude jumped +7.08 to 97.41 USD/bbl (up from 90.33).

• Foreign Exchange:

  • USD / INR: 95.00 (Rupee gained +1.72)

  • USD / BDT: 123.17 (Taka eased -0.16)

  • USD / PKR: 276.94 (Rupee gained +0.06)

  • USD / TRY: 49.51 (Lira eased -0.27)

Benchmark Scrap & Demolition Price Levels

Reported Demolition Sales

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