Global Ship Recycling Markets Hold Firm Amid Acute Tonnage Shortage and Currency Headwinds: BEST OASIS
By Maritime Reporter, Dubai: The global ship recycling industry witnessed resilient scrap prices and firm buyer sentiment this week, even as shipbreakers across the Indian subcontinent and Turkey grappled with a severe scarcity of incoming tonnage, according to the latest weekly market report released by Best Oasis, the world’s leading cash buyer of end-of-life vessels.
The market dynamics unfolded against a backdrop of soaring energy benchmarks and fluctuating emerging-market currencies. Brent Crude surged by $10.55 per barrel to close between $94.31 and $104.86, while WTI crude jumped $9.86 to trade between $89.92 and $99.78. Meanwhile, a strengthening US dollar pressured local foreign exchange valuations, with the Indian Rupee sliding to 95.51 per dollar (down 1.05 week-on-week), the Bangladeshi Taka easing to 123.39 (down 0.56), and the Turkish Lira softening to 48.58 (down 0.17). The Pakistani Rupee bucked the trend marginally, strengthening by 0.09 to 277.20.
India: Buoyant Tone Tested by Supply Void
India’s ship recycling hub at Alang retained a firm posture, though upward price momentum leveled off near recent peaks. Domestic scrap yards faced an empty pipeline, with no fresh vessels made available for sale to Alang throughout the entire trading week. The rapid appreciation of the greenback prompted domestic buyers to adopt a more measured bidding posture. However, local recyclers continue to source sanctioned tonnage to sustain operational volume. With imports of Iranian steel remaining entirely suspended, demand for ship-derived scrap steel continues to find solid structural support. Local Heavy Melting Steel (HMS 1&2) scrap ticked up 1.28% to $390 per tonne, with shredded scrap reaching $400. Tanker scrap stood at $455 per Light Displacement Tonnage (LDT), bulkers at $440/LDT, and containers held at $485/LDT.
Pakistan: Appetite Strong, Shelves Empty
In Gadani, Pakistan’s recycling market mirrored India’s buoyant undertone. Demolition yards exhibited aggressive buying interest, backed by the sustained deficit of Iranian billet supply. Yet, yards remained hamstrung by an absolute dearth of prompt tonnage. Despite the supply-demand mismatch, Pakistani recyclers successfully secured three key fixtures: the bulkers Lina F (5,688 LDT) at $514/LDT and Hero SD (5,006 LDT) at $512/LDT, alongside multi-purpose vessel Larus (2,632 LDT) at $515/LDT. Subcontinent offer levels for Gadani closed firm at $500/LDT for container ships, $490/LDT for tankers, and $480/LDT for bulkers.
Bangladesh: Stable Inflows and Selective Buying
Chittagong posted a week of steady, moderate activity. Recyclers avoided chasing speculative prices, focusing instead on conventional tonnage and bulk carriers at balanced valuations. Bangladeshi rates registered the week’s strongest localized gains, with scrap prices advancing 3.41% to $520/LDT for container tonnage, $510/LDT for tankers, and $485/LDT for dry bulk. Local HMS scrap climbed 2.56% to $395 per tonne. Noted deals included the small oil tanker V.L.15 (1,395.42 LDT), delivered on undisclosed financial terms.
Turkiye: Stable Yards and Regulatory Filters
Aliaga’s shipbreakers operated at a measured pace. Yards remained insulated by previous forward bookings, muting aggressive bidding for fresh inventory. Turkish buyer interest concentrated on high-specification, well-maintained units, while the depreciating lira kept cost calculations defensive. Scrapping price guides hovered unchanged at $285/LDT for containers, $275/LDT for tankers, and $265/LDT for bulkers. Aliaga nonetheless logged notable activity, accepting deliveries of ore/oil carrier Amship 2 (1,808 LDT), LPG carrier Gas Aura (2,104 LDT), bulker Sormovskiy-123 (1,272 LDT), and the decommissioned naval frigate HMS Westminster (3,150 LDT). Elsewhere, the 7,078 LDT bulker Uniorder changed hands on an ‘as-is’ basis in Belawan, Indonesia, at $450/LDT.
With macroeconomic shifts and tonnage starved across major beaches, Best Oasis indicates that pricing floors will remain tightly insulated by fundamental supply shortages in the sessions ahead.
Author: shipping inbox
shipping and maritime related web portal
