Global Ship Recycling Markets Remain Under Pressure as Sentiment Softens Across South Asia : BEST OASIS
The global ship recycling market continued to face headwinds during the past week, with subdued activity, cautious buyer participation and persistent currency pressures weighing heavily on sentiment across major recycling destinations. In its latest weekly ship recycling market report, BEST OASIS, one of the world’s leading cash buyers for vessels sent for recycling, highlighted a broadly soft outlook in South Asia, punctuated only by isolated transactions that offered brief signs of resilience.
Across India, Bangladesh and Pakistan, buyers largely remained on the sidelines, adopting a selective, wait-and-see approach amid uncertain economic signals and volatile exchange rates. Türkiye, meanwhile, maintained its characteristic stability, with steady pricing and minimal fluctuations, reinforcing its reputation as a low-volatility recycling market.
India: Market Softens Amid Currency Weakness
India’s ship recycling market softened further over the week, as downward pressure on prices persisted in an environment of weak overall sentiment. According to BEST OASIS, ongoing currency weakness continued to undermine buyer confidence, restricting participation and reducing the appetite for new acquisitions.
The depreciation of the Indian rupee against the US dollar remained a key concern. The USD/INR exchange rate slipped to 90.49 during the week, compared with 89.97 in the previous period, reflecting a loss of 0.52. This movement added to cost pressures for recyclers, making imported tonnage more expensive and limiting their ability to compete aggressively on price.
Buyer participation in India was described as limited throughout the week, with most recyclers adopting a cautious and selective stance. Overall activity levels remained subdued, with little indication of a near-term recovery. Container vessels were quoted at around USD 400 per light displacement ton (LDT), tankers at USD 385/LDT and bulkers at USD 370/LDT, reflecting a week-on-week decline of approximately 2.5 percent across segments.
Despite the soft market, one notable tanker sale was concluded. The motor tanker Morality, with an LDT of 9,824, was delivered to Alang at a price of USD 416/LDT. While the deal provided some support to market benchmarks, it was not sufficient to reverse the broader downward trend in sentiment.
Bangladesh: Weak Activity, but Pockets of Strength
Bangladesh’s ship recycling market remained weak overall during the week, with activity levels staying very low. Buyer participation was described as extremely limited, with only one notable bulker sale concluded during the period.
However, that single transaction stood out for its surprisingly strong pricing. The bulker Sage Sagittarius, with an LDT of 19,628, was delivered to Chittagong at USD 430/LDT. The price outperformed regional alternatives and underscored Bangladesh’s ability, under the right circumstances, to deliver higher returns for owners seeking premium levels.
BEST OASIS noted that, despite weak sentiment and a lack of active buyers, the transaction highlighted that Bangladesh can still achieve stronger outcomes when specific demand and vessel profiles align. This remains particularly relevant for owners weighing options across South Asia, where pricing differentials can be significant even in a soft market.
On the currency front, the Bangladeshi taka showed marginal improvement, with the USD/BDT rate moving to 122.01 from 122.46 the previous week, a gain of 0.45. While this provided limited relief to recyclers, it was not enough to materially change market dynamics.
Indicative pricing levels in Bangladesh remained around USD 430/LDT for container vessels, USD 420/LDT for tankers and USD 385/LDT for bulkers, broadly unchanged week-on-week.
Pakistan: Steady, but Stuck in Wait-and-See Mode
Pakistan’s ship recycling market showed little change compared with the previous week, with conditions largely mirroring the prior period. Sentiment remained steady, but there was no visible shift in buyer behaviour or appetite.
BEST OASIS described the market as being firmly in a wait-and-see mode, with recyclers reluctant to take decisive positions amid uncertain global and regional signals. The USD/PKR exchange rate edged up to 280.36 from 281.59, reflecting a gain of 1.23, but this modest movement did not translate into increased activity.
Pricing levels in Pakistan remained firm relative to other regional markets, with container vessels indicated at USD 415/LDT, tankers at USD 400/LDT and bulkers at USD 390/LDT. No major price movements were recorded during the week.
A multipurpose vessel, Ardhianto, with an LDT of 2,922, was delivered to Gadani, although the sale price remained undisclosed. Another bulker, DSM Norwich (7,542 LDT), was sold for delivery within the Asian subcontinent, also at an undisclosed level.
Türkiye: Stability in a Low-Volatility Market
Türkiye’s ship recycling market once again demonstrated its characteristic stability. The market remained steady throughout the week, with pricing and sentiment showing no material movement. Activity levels continued without any notable change, reinforcing Türkiye’s reputation as a consistent, low-volatility destination.
The Turkish lira showed a slight weakening against the US dollar, with the USD/TRY rate edging down to 42.63 from 42.50, a loss of 0.13. Despite this, recyclers maintained stable pricing, reflecting a balanced domestic steel market.
Indicative prices in Türkiye stood at around USD 290/LDT for container vessels, USD 280/LDT for tankers and USD 270/LDT for bulkers. One multipurpose vessel, Sea Star (2,041 LDT), was delivered to Aliaga at a reported price of USD 260/LDT.
Steel Prices and Oil Markets
Steel fundamentals remained largely unchanged during the week. Prices for HMS 1&2 (80:20) stayed flat at USD 358 per tonne across India, Bangladesh and Pakistan, while Türkiye recorded slightly higher levels at USD 372 per tonne. Shredded steel prices were also stable, with no week-on-week changes reported.
In the energy markets, crude oil prices continued to trend lower. Brent crude and WTI crude both recorded declines of just over USD 2 per barrel during the week, adding another layer of uncertainty to the broader maritime and recycling sectors.
Outlook: Caution Dominates Near-Term Prospects
The latest BEST OASIS report underscores a ship recycling market struggling to find momentum amid weak sentiment, currency volatility and cautious buyer behaviour. While isolated deals, such as the strong bulker sale in Bangladesh, demonstrate that opportunities still exist, the broader outlook remains challenging.
With limited vessel availability, hesitant buyers and few catalysts for immediate improvement, activity across South Asia is expected to remain subdued in the near term. Market participants are likely to continue monitoring currency movements, steel prices and global economic signals closely, waiting for clearer indicators before committing to new recycling purchases.
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