Ship Recycling: Market Remained Quiet: BEST OASIS
June 26, 2025, marks a key regulatory moment in the ship recycling landscape, with the Hong Kong Convention (HKC) officially entering into force. On the same day, the UAE has implemented its own Ship Recycling Regulation (UAE SRR), which aligns with the HKC but introduces distinct national requirements, including the prohibition of beaching and the use of only dry docks or equivalent facilities. Given the UAE’s geographic position as a major transit and bunkering hub for vessels heading toward recycling yards in South Asia, the new regulation carries wider implications. Even vessels not recycling in the UAE may be subject to increased scrutiny during port calls or transits, effectively turning the UAE into a soft enforcement point along key recycling routes. These developments are expected to prompt a reassessment of compliance strategies, potentially adding pressure on older tonnage and reshaping routing decisions in the near term. The market is now watching closely to see how these new frameworks play out in practice.
The ship recycling market remained quiet this week, with all major destinations showing subdued activity. In India, prices continued to decline with the onset of the monsoon and weakening demand from the construction and steel sectors. Bangladesh also saw limited momentum, with only a few HKC compliant yards active and buying interest staying low. Pakistan experienced some demand due to reduced Iranian steel exports, but uncertainty around compliance and regulation kept overall sentiment cautious. Türkiye remained largely inactive, with low mill output and weak domestic steel demand discouraging fresh purchases. Overall, the market across all major recycling destinations remains under pressure, with seasonal factors, regulatory changes, and weak steel fundamentals contributing to a cautious and slow-moving environment.
Exchange Rates:
USD / INR USD / BDT USD / PKR USD / TRY
This Week : 85.71 Previous Week : 86.58 Lost : 0.87
This Week : 122.36 Previous Week : 122.32 Lost : 0.04
This Week : 283.73 Previous Week : 283.81 Gained: : 0.08
This Week : 39.77 Previous Week : 39.65 Lost : 0.12
Best Oasis Limited Weekly Ship Recycling Report 02
India
The market sentiment sinks as monsoon and global trends Pressure prices.
The market has seen a sharp drop in recycling vessel prices as the monsoon season approaches. This decline is in line with seasonal patterns, and prices are expected to soften further in the coming weeks.
Construction activity, one of the key drivers of steel consumption, typically slows during the monsoon period. This seasonal dip reduces demand for steel and related services, further weakening overall market activity.
The same pressures are seen across the steel sector, where early monsoon, weak demand, and falling Chinese prices have caused HRC prices to fall 4% since late April, alongside slower sales and fewer inquiries from distributors.
Beaching Dates: 22 June to 30 June
Bangladesh
The market remains slow with limited interest and a looming price correction.
The market in Bangladesh remains slow, and with the upcoming monsoon showers expected to impact activity further, momentum continues to decline. As only a handful of yards are HKC-compliant, they are the only ones expected to receive NOCs in the future. Therefore, buying interest has also been quite subdued.
Owners planning to recycle vessels in the coming months should be prepared for a significant price correction, with expected offers at least 15–20% lower than the highs seen six months ago.
The IMF has approved immediate access to an additional $884 million for Bangladesh, supporting its economic reform program. Despite a challenging political and economic backdrop, the IMF said the country’s program performance remains broadly satisfactory following recent talks with government officials.
Beaching Dates
24 June to 27 June
11 July to 14 July
24 July to 27 July
Pakistan
The market sees temporary interest as the regulatory path remains unclear.
Some local demand is present, largely due to the slowdown in Iranian steel exports following recent strikes.
There are currently no HKC-compliant yards in Pakistan. However, the government is expected to grant permission to those yards that have formally signed up for HKC compliance. With MEPC now in force, it is to be seen which owners decide to send vessels to Pakistan under the current regulatory environment.
The market remains cautious, with most players waiting for more clarity before committing.
Beaching Dates Throughout the month
Türkiye
The market remains flat with negative sentiment and limited appetite for tonnage.
The market remains in the same state as the previous week, with no notable change in conditions. While prices have held stable, overall sentiment remains negative.
Local yards are not actively seeking tonnage, as steel mills continue to operate at reduced capacity due to sluggish sales and weak end-user demand. With production levels low and no signs of recovery yet, recyclers are expected to remain passive in the short term.
Beaching Dates Throughout the month
List of Vessels Sold this Week
VESSEL NAME TYPE OF VESSEL IMO NO.YEAR OF BUILDCOUNTRY OF BUILD LDT TERM OF SALELOCATION OF DELIVERY SALE PRICE/LDT (USD)
BITUMEN PRINCESS ASPHALT TANKER 9133719 1995SOUTH KOREA2,883.90 DELIVERED ALANG, INDIA 345
DAE WON OIL & CHEMICAL TANKER 9197143 1998 JAPAN 5,237.57 AS-IS KARACHI, PAKISTAN 802 (390 MT BUNKERS ROB) ASTORIA PASSENGER 5383304 1948 SWEDEN 10,157.00 AS-IS ROTTERDAM 20
