No Respite in Sight: Global Steel Shifts Sink Ship Recycling Markets from Alang to Aliag: BEST OASIS
Asian and Turkish yards struggle as China’s steel exports tighten margins and sentiment stays weak
Ship recycling markets across South Asia and Türkiye remain under sustained pressure, with sentiment weak and no improvement in activity levels. In India, sluggish demand persists as cheaper local steel continues to limit market momentum, while monsoon conditions are disrupting yard operations and adding to the challenges faced by recyclers.
Bangladesh is seeing buyers stay cautious, with HKC compliance processes still unclear and the DASR pending for both Bangladesh and India, keeping overall confidence low. Pakistan remains subdued, with very few buyers active as uncertainty over compliance continues to weigh on sentiment. In Türkiye, appetite for tonnage continues to decline, as steel mills are operating at much lower capacity and taking in only limited volumes. Across the board, markets remain quiet, with no immediate triggers for recovery in sight.
Regional steel trade patterns are shifting as China steps up exports to Russia, filling gaps left by falling Russian steel production. With weak demand at home and growing barriers in other export markets, China is pushing more low-cost and specialized steel into Russia, where mills are struggling to meet domestic needs under the weight of sanctions. This has helped China maintain high export levels so far this year, but it is also adding to price pressure in nearby markets and fueling calls for new trade protections as countries move to shield their industries from cheap imports.
Exchange Rates:
USD / INR USD / BDT USD / PKR USD / TRY
This Week : 85.38 Previous Week : 85.71 Gained : 0.87
This Week : 122.71 Previous Week : 122.36 Lost : 0.35
This Week : 284.08 Previous Week : 283.73 Lost : 0.08
This Week : 39.84 Previous Week : 39.77 Lost : 0.07
Best Oasis Limited Weekly Ship Recycling Report 02
India
The market remains slow and depressed as weak fundamentals persist.
The market continues to struggle, with no relief from the sluggish conditions seen in recent weeks. Activity remains minimal, and buying interest is muted as overall sentiment stays weak.
The wide availability of cheap local steel is further affecting the overall sentiment and momentum in the market, making it even harder for recyclers to generate meaningful activity.
The onset of the monsoon season is adding to the challenges, as yard operations slow further under difficult working conditions. Together, these factors are keeping the market under sustained pressure.
Beaching Dates
08 July to 16 July
21 July to 29 July
08 August to 16 August
Bangladesh
Price for Recycling Ships in Bangladesh Weak sentiment persists as buyers hold back and regulatory approvals are awaited.
The ship recycling market continues to struggle, with buyers showing little interest in securing new tonnage. Sentiment remains soft in the wake of HKC enforcement, and overall activity is subdued.
There is still a lack of clarity on HKC-related matters, with the Document of Authorization for Ship Recycling (DASR) for Bangladesh still pending. The delay in DASR for India as well has contributed to the overall cautious atmosphere across the region.
Around 13 yards have received approval for their Ship Recycling Facility Plan (SRFP) from the ministry, but the official handover of these approvals is still awaited. This is expected to take place in the next 15 to 20 days or possibly within a month.
The pace of infrastructure upgrades appears to have increased, with reports indicating that up to 20 more yards could become HKC compliant in the next two to three months. It remains to be seen if this will actually happen and if it will make any difference to market activity.
Beaching Dates
11 July to 14 July
24 July to 27 July
09 August to 12 August
Pakistan
Price for Recycling Ships in Pakistan Market remains slow as compliance confusion keeps buyers on the sidelines.
The ship recycling market in Pakistan remains subdued, with very few buyers active. Sentiment is weak, and overall market conditions are down, as uncertainty over HKC compliance keeps most players on the sidelines and continues to weigh on confidence across the sector.
On a separate note, Russia is expected to finalize an agreement in the coming months for the construction of a new steel mill in Karachi, as confirmed by the Russian Consul General.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye Market conditions are unchanged as recyclers remain largely inactive.
As we reported in previous weeks, sentiment in Türkiye remains unchanged, with the market in the same state it has been for some time.
Appetite for tonnage continues to decline, as steel mills are operating at much lower capacity and taking in only limited volumes. This has left recyclers largely inactive, with little incentive to pursue fresh tonnage as the overall market remains subdued and shows no sign of near-term improvement.
Beaching Dates Throughout the month
