India Remains Positive but Less Competitive South Asian Ship Recycling Market : BEST OASIS
The South Asian ship recycling market continued to show positive sentiment during the week, with Pakistan emerging as the strongest market among the major recycling destinations, while India remained the least competitive in terms of pricing, according to the latest weekly market report from leading global ship recycling cash buyer Best Oasis.
The report said Indian buyers continue to show interest in available recycling tonnage, but are facing increasing difficulty competing with the stronger appetite and higher price levels being offered by buyers in Pakistan and Bangladesh.
India Remains Positive but Less Competitive
India’s ship recycling market remained stable and positive during the week. Buyers continued to examine available vessels, although their ability to compete for tonnage has been constrained by comparatively lower price levels.
Best Oasis noted that India currently remains the least competitive of the three major South Asian recycling destinations. While buying interest remains intact, Pakistan and Bangladesh are offering stronger levels, making it challenging for Indian buyers to secure suitable vessels.
Indicative ship recycling prices in India stood at around $470 per LDT for container vessels, $440 for tankers and $425 for bulkers, with the overall market described as firm. Bulker prices increased by about 2.3 per cent week-on-week.
Bangladesh Maintains Competitive Position
Bangladesh also retained a positive market tone despite some softening in domestic market conditions. Buyers have adopted a more measured approach, but demand for suitable recycling vessels remains evident.
Best Oasis said Bangladesh continues to perform above India and remains competitive for appropriate tonnage. Indicative levels were around $510 per LDT for containers, $500 for tankers and $455 for bulkers.
The Bangladesh market’s continued competitiveness reflects sustained buyer interest despite a somewhat softer local steel market.
Pakistan Leads the Region
Pakistan was the clear front-runner during the week, with buyers demonstrating strong appetite and operating at comparatively high levels.
The report described the Pakistani market as being in a “buying spree”, with local recyclers showing greater aggression and competitiveness than their counterparts in India and Bangladesh. Indicative prices reached $520 per LDT for containers, $510 for tankers and $500 for bulkers, while bulker values rose by a significant 6.25 per cent week-on-week.
The sale of the 6,140-LDT bulker Maria, delivered to Gadani, at $532 per LDT underlined the strength of Pakistan’s market.
Turkey Market Remains Moderate
Turkey’s recycling market remained subdued. The Turkish lira weakened further during the week, reaching a new record low, while demand for recycling tonnage remained limited.
Best Oasis said vessels heading to Turkey are largely influenced by EU regulatory requirements. Damaged ships located close to Turkish recycling facilities may also be directed there because of the practical and economic advantages.
Indicative Turkish levels stood at $285 per LDT for containers, $275 for tankers and $265 for bulkers.
Crude Oil Prices Rise
Commodity markets also strengthened during the week. Brent crude increased by $6.29 to $92.94 per barrel, while WTI crude climbed $5.03 to $85.94.
Currency movements showed the US dollar at ₹95.72 against the Indian rupee, BDT 122.39, PKR 277.76 and TRY 48.06.
Among notable reported transactions, Isa Star, a 3,412-LDT tanker, was sold for $435 per LDT for delivery to Chittagong, while Maria achieved $532 per LDT at Gadani. The reefer Arkadija, with 4,628.71 LDT, was sold on an as-is basis for delivery at Busan at $463 per LDT.
Overall, the report indicates that the ship recycling market remains firmly positive, but competition among South Asian destinations is becoming increasingly price-driven, with Pakistan currently holding the strongest position and India under pressure to improve its competitiveness.
Author: shipping inbox
shipping and maritime related web portal
