Ship Recycling: Market Conditions Remain Flat: BEST OASIS
Ship recycling markets across South Asia and Türkiye continue to face a lack of momentum, with sentiment soft and activity largely stagnant. In India, conditions remain flat as demand shows no meaningful improvement. Monsoon rains are gradually impacting yard operations, adding further drag to already quiet market dynamics. In Bangladesh, the market remains in a state of limbo, mirroring last week’s inactivity. Buyers remain cautious, with HKC-aligned capacity limited and no fresh interest emerging. Indicative pricing is holding, but actual deals remain sparse. Pakistan continues to face structural hurdles. Although buyer interest exists, most shipowners are hesitant to commit, with uncertainty over HKC compliance and currency weakness weighing on the market. Isolated sales are not indicative of broader sentiment. Türkiye shows no change in sentiment or price levels. Steel mills are running at low capacity, and while more tonnage is being offered, it has yet to impact pricing significantly. Across regions, recyclers remain cautious, with no immediate signs of improvement.
OPEC’s newly released outlook projects global oil demand will rise steadily to 123 million barrels per day by 2050, driven by industrial growth and rising consumption in non-OECD countries. While this signals a long-term reliance on oil and sustained demand for tankers and offshore assets, the near-term impact on the recycling market is limited. Recycling activity continues to be influenced more by local fundamentals, compliance hurdles, and weak buying interest than by distant demand forecasts. Still, over time, this trend could lead to higher vessel retention now and increased recycling volumes in later years as fleets age.
Exchange Rates:
USD / INR USD / BDT USD / PKR USD / TRY
This Week : 85.84 Previous Week : 85.38 Lost : 0.46
This Week : 121.73 Previous Week : 122.71 Gained : 0.98
This Week : 284.42 Previous Week : 284.08 Lost : 0.34
This Week : 40.17 Previous Week : 39.84 Lost : 0.33
India
The market continues to remain slow and steady, showing no clear signs of movement in either direction.
Activity has remained quiet over the past several days. There has been no noticeable improvement, but also no significant decline. Things are largely holding at the same level.
Some minor movement was seen in the local market, though it’s too early to tell whether this will be sustained. Demand remains soft, and buyer interest is limited.
With the monsoon gradually setting in, yard operations are expected to slow further. Market sentiment remains cautious, and it is difficult to predict how long this phase will last. Forward visibility continues to be unclear.
Beaching Dates
08 July to 16 July
21 July to 29 July
08 August to 16 August
Bangladesh
Muted market conditions persist with no clear signs of movement.
The ship recycling market remains quiet, with conditions almost identical to the previous week. There is no fresh interest from buyers at the moment, and overall activity stays muted.
A bulker was reportedly sold at around USD 380/LDT, which is now seen as the indicative price level. Most buyers are targeting similar levels, but deals remain limited. Only a few buyers currently hold HKC compliance, and they are holding back, waiting for prices to align with their expectations before stepping in.
Some movement or clearer direction may emerge next week, but for now, the market remains in a holding pattern, showing no real change from recent trends.
Beaching Dates
11 July to 14 July
24 July to 27 July
09 August to 12 August
Pakistan
Pakistan Recycling remains restricted with sellers holding back amid HKC uncertainty.
The market continues to face challenges. Although buyer interest is present, most shipowners are reluctant to sell due to ongoing concerns around HKC compliance.
A recent bulker was sold at 431 levels, but this remains an isolated case, driven by HKC-ready yards actively seeking tonnage. It does not reflect broader market sentiment. Only about eight yards in Pakistan, with roughly 60% HKC compliance work completed, are currently eligible to receive vessels.
Adding to the challenge is a weakening Pakistani Rupee. After holding stable at PKR 280 per USD for months, the currency has now slipped to PKR 283, eroding local buying power and contributing to softer demand.
Beaching Dates Throughout the month
Türkiye
Türkiye Market remains unchanged as fresh tonnage builds quietly in the background.
Market conditions remain unchanged, continuing the flat trend seen in recent weeks. Sentiment and prices are holding steady with no shifts in fundamentals.
However, there has been a noticeable increase in the number of vessels being offered for recycling. While this growing supply has not yet affected market dynamics, it is expected to apply downward pressure on prices in the near term.
Separately, the government has raised taxes on lira deposits and funds to boost budget revenue. While unrelated to recycling directly, the move adds to a cautious economic outlook.
Beaching Dates Throughout the month
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