Pakistan Maintains Firm Momentum as Global Ship Recycling Markets Show Mixed Trends : BEST OASIS
The global ship recycling market displayed mixed trends during the past week, with Pakistan emerging as one of the strongest destinations for end-of-life vessels, while India and Bangladesh experienced softer conditions and Türkiye remained subdued, according to the latest weekly report released by leading cash buyer for ships, Best Oasis Limited.
The report indicates that market sentiment across the major recycling destinations remained influenced by local steel demand, payment conditions, currency movements, and broader geopolitical developments.
In India, the market witnessed a modest correction after a period of elevated pricing. Industry observers noted that the decline should not be interpreted as a sign of strengthening sentiment but rather as a market adjustment following the sale of a high-priced vessel in previous weeks.
A significant development in the Indian market was the decision by the recyclers’ association to introduce loading charges at yards while simultaneously encouraging stricter payment discipline among buyers and steel mills. Under the revised framework, mills are expected to settle payments on the following day or within a maximum credit period of ten days. Payment cycles had previously become more relaxed amid recent geopolitical uncertainties.
Market participants believe these measures could improve liquidity for ship recyclers. However, the introduction of additional loading costs and tighter payment requirements may increase pressure on downstream buyers and steel mills. Analysts expect the market to experience some short-term weakness as stakeholders adjust to the new commercial environment and evaluate its impact on profitability.
Bangladesh, meanwhile, recorded a slight softening in local prices during the week. Despite the correction, buyer interest remained visible, particularly for mid-sized vessels, which continue to be the preferred segment among local recyclers.
The country retained its position as the highest-paying ship recycling destination among the major South Asian markets. This pricing advantage is expected to sustain buyer interest and support activity despite the recent easing in local steel prices.
Pakistan continued to demonstrate resilience, with the market remaining firm throughout the week. Buyers were actively seeking vessels, and overall sentiment stayed positive.
According to the report, a shortage of available recyclable tonnage has supported local prices and strengthened buyer confidence. Limited supply of suitable vessels has helped maintain competitive pricing and positioned Pakistan as one of the more attractive destinations for ship owners considering recycling options.
The positive outlook for Pakistan comes at a time when the country is also moving forward with legislative reforms aimed at aligning its ship recycling industry with international environmental and safety standards, potentially enhancing the long-term competitiveness of the Gadani recycling sector.
Türkiye’s ship recycling market remained largely inactive, with very few transactions reported during the week. Market sentiment continued to be cautious, reflecting concerns over domestic political developments, regional geopolitical tensions, and the continuing depreciation of the Turkish lira.
Industry participants noted that these factors have made it difficult to predict the market’s short-term direction, resulting in limited activity and subdued trading levels.
The report also highlighted movements in global energy markets. Brent crude oil prices increased from USD 93.56 per barrel to USD 94.90 per barrel, while West Texas Intermediate (WTI) crude rose from USD 90.11 per barrel to USD 92.90 per barrel during the reporting period.
Currency markets showed modest changes. The US dollar strengthened slightly against the Indian rupee, Bangladeshi taka, Pakistani rupee and Turkish lira, reflecting continued volatility across emerging market currencies.
Ship recycling prices remained under pressure in most destinations. India offered around USD 430 per light displacement tonne (LDT) for container vessels, USD 415 for tankers and USD 400 for bulk carriers. Bangladesh quoted approximately USD 460, USD 450 and USD 425 per LDT respectively, while Pakistan led the market with prices reaching USD 480 per LDT for container ships, USD 470 for tankers and USD 460 for bulk carriers.
During the week, only a limited number of vessel sales were reported. The multi-purpose vessel Yamal Irbis with an LDT of 4,179 tonnes and the vessel Afer with an LDT of 1,625 tonnes were both delivered to Aliaga, Türkiye, for recycling. Sale prices for both transactions were not disclosed.
Industry experts expect market participants to closely monitor steel demand, currency fluctuations and geopolitical developments in the coming weeks, as these factors are likely to determine the direction of global ship recycling activity through the remainder of the month.
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