Ship Recycling: Limited Momentum Across Key Destinations: BEST OASIS
The global ship recycling market faced headwinds, with limited momentum across key destinations. In India, the week began with marginal positivity, hinting at a potential uptick in sentiment. However, trading activity soon lost steam, constrained by ongoing financial tightness that continues to limit liquidity and participation in the domestic market. Bangladesh remains under the spotlight as the industry edges closer to upcoming regulatory milestones. Despite some movement on compliance, broader market sentiment remains cautious, influenced by uneven yard preparedness and restricted approval flows. Pakistan offered little in terms of activity, with buying interest staying muted and pricing remaining unaligned with regional benchmarks. This disconnect continues to suppress transactions and keep market conditions stagnant. In Türkiye, local prices showed no significant movement, even as import costs edged upward, indicating a cautious stance from buyers amid broader market uncertainty.
Tensions between India and Pakistan have intensified in recent days, with increased military activity and strained bilateral relations raising concerns across the region. As two of South Asia’s key economic players and home to major ship recycling operations, the current instability adds a layer of uncertainty to the broader landscape. It is hoped that both nations can move toward de-escalation to ensure regional stability and continuity in cross-border engagement.
Global economic growth is projected to slow to 2.3 per cent in 2025, falling below the recession threshold, warns UNCTAD. The slowdown is driven by rising tariff tensions, especially US tariffs on Chinese goods, reduced global trade, declining investor confidence, and capital outflows from developing countries due to higher interest rates. UNCTAD calls for urgent policy action to restore stability and support development.
Exchange Rates:
USD / INR USD / BDT USD / PKR USD / TRY
This Week : 85.37 Previous Week : 84.47 Lost : 0.9
This Week : 121.47 Previous Week : 121.56 Gained : 0.09
This Week : 281.42 Previous Week : 281.16 Lost : 0.26
This Week : 38.75 Previous Week : 38.56 Lost : 0.19
Best Oasis Limited Weekly Ship Recycling Report 02
India
The market sees early improvement but loses pace as liquidity constraints persist.
The market opened the week on a slightly firmer note, showing signs of improvement.
However, the upward momentum was short-lived, with trading activity tapering off by mid-week.
Liquidity remains tight across the local finance ecosystem, with limited fund movement affecting both traders and mill owners. This ongoing constraint continues to weigh on overall activity and sentiment.
In its World Economic Outlook, the International Monetary Fund (IMF) projects that India is set to overtake Japan and become the world’s fourth-largest economy in 2025.
Beaching Dates
11 May to 17 May
24 May to 01 June
09 June to 17 June
Bangladesh
Price for Recycling Ships in Bangladesh The market weakens further as compliance pressure mounts ahead of HKC deadline.
With the enforcement date for the Hong Kong Convention (HKC) set for 26 June 2025, attention is firmly on Bangladesh’s readiness. The local market remains soft and regressive, with sentiment weighed down by limited approvals and low activity.
As reported earlier, only those recyclers who applied for NOCs a month ago and have completed approximately 50% to 70% of the required infrastructure upgrades for HKC compliance are currently receiving approvals. Yards with little or no progress remain stalled, facing increasing difficulty as the deadline nears.
With only a limited number (7) of HKC-compliant yards currently operational and the likelihood of an extension appearing slim, the industry is entering a critical compliance phase. How Bangladesh responds to these regulatory pressures will have a notable influence on both regional and global recycling trends in the weeks ahead.
Beaching Dates
11 May to 14 May
26 May to 29 May
11 June to 14 June
Pakistan
The market stays weak as buying interest fades and offer levels remain uncompetitive.
The market remains quiet, with minimal activity and limited buying interest.
In the few instances where offers are made, levels remain substantially below competing markets, particularly India, leaving transactions unworkable under current conditions. With limited demand and uncompetitive pricing, the market remains stagnant, showing no signs of near-term recovery.
On the macroeconomic front, the IMF is scheduled to review Pakistan’s staff-level agreement for a 1.3 billion USD loan under its climate resilience programme. The review takes place amid rising regional tensions, with one of the key member countries expected to raise objections during the voting process.
Beaching Dates Throughout the month
Türkiye
The market remains flat despite rising import costs; inflation slows slightly in Türkiye. The local market remains flat, showing no change in domestic pricing despite a recent 8 USD increase in imports.
Türkiye’s Consumer Price Index (CPI) rose 3.0% month-on-month in April, below consensus (3.1%) and earlier estimates (3.2%), bringing annual inflation to 37.9% from 38.1% in March, still well above the Central Bank of Türkiye’s CBT year-end forecast of 24%.
Beaching Dates Throughout the month
