Global Ship Recycling Market Report: South Asia Diverges Amid Mixed Sentiment and Shifting Steel Dynamics : BEST OASIS

Global Ship Recycling Market Report: South Asia Diverges Amid Mixed Sentiment and Shifting Steel Dynamics : BEST OASIS

Sub-continent demolition markets presented a varied landscape this week, marked by regional price disparities, steady industrial demand, and nuanced currency movements across key shipbreaking hubs as described by BEST OASIS in their weekly ship recycling market report. While Bangladesh and Pakistan maintained a distinct pricing advantage for standard merchant units, India sustained throughput by carving out a niche in specialized and non-standard tonnage.

Regional Market Breakdown

India: Specialized Niche Sustains Alang Yards

The Indian ship recycling market held steady, driven primarily by interest in niche and specialized tonnage such as reefers, passenger vessels, and sanctioned units. Recent transactions for passenger and reefer units fetched solid numbers, proving resilient despite a minor drop in domestic finished steel prices.

However, attracting standard dry and wet bulk tonnage remains a major hurdle. With Pakistan pricing around USD 30–40/LDT higher and Bangladesh commanding a substantial USD 80–90/LDT premium, Alang recyclers remain largely uncompetitive for conventional tonnage, directing their focus toward green recycling and complex vessels.

Bangladesh: Steady Inquiries Despite Softer Sentiment

In Chattogram, market activity remained firm, though sentiment cooled slightly compared to the robust momentum recorded two weeks ago. Local plate prices softened marginally toward the end of the week, indicating that current offer levels could face slight downward pressure in the near term. Nevertheless, overall demand for mid-to-large-sized vessels remains robust, with local breakers continuing to hunt for suitable candidates.

Pakistan: Tightening Iranian Supply Bolsters Scrap Demand

Gaddani recyclers witnessed strong buying appetite, supported by an acute shortage of imported Iranian steel billets. As alternative raw material channels dried up, reliance on scrap derived from ship recycling surged significantly. Breakers in Pakistan are expected to remain aggressive in the coming week to secure prompt deliveries and replenish domestic steel inventories.

Türkiye: Aliaga Holds Steady at Moderate Levels

The Turkish demolition sector saw quiet, stable conditions at Aliaga. Buyer interest and overall market fundamentals remained unchanged week-on-week, keeping sentiment neutral. Aliaga saw several smaller multi-purpose vessels (MPPs) delivered locally, but broader activity remains at baseline levels awaiting positive scrap price catalysts.

Price & Market Indicator Overview

Ship Recycling Price Indications (USD / LDT)

Imported Scrap & Commodities (USD / Ton)

• HMS 1&2 (80:20): India ($385), Bangladesh ($385), Pakistan ($390), Türkiye ($377, +0.52%).

• Shredded: India ($395), Bangladesh ($395), Pakistan ($395), Türkiye ($397, +0.52%).

• Energy Markets: Brent Crude surged +$4.48 to settle at $86.65/bbl, while WTI gained +$3.80 to reach $80.91/bbl.

Foreign Exchange Movements

• USD / INR: 95.51 (Depreciated 0.32)

• USD / BDT: 122.69 (Appreciated 1.30)

• USD / PKR: 277.62 (Appreciated 0.35)

• USD / TRY: 47.87 (Depreciated 0.17)

Reported Vessel Sales

A notable transaction this week was the sale of the tanker GREEN STARS (8,274 LDT), concluded at USD 500/LDT on an “as-is” Belawan, Indonesia basis.

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