Ship Recycling Markets Diverge as India Holds Firm Amid Global Softness : BEST OASIS
Global ship recycling markets presented a mixed outlook this week, with India maintaining elevated pricing despite weak domestic fundamentals, while Bangladesh and Türkiye experienced softer market sentiment, according to the latest weekly report issued by leading cash buyer Best Oasis.
The report highlighted that India’s ship recycling sector continues to demonstrate resilience, primarily due to a shortage of available vessels for demolition. Despite subdued local steel demand and cautious market conditions, recyclers have remained active in acquiring tonnage to sustain yard operations and preserve workforce capacity.
Best Oasis noted that Indian recyclers are increasingly concerned that current price levels are disconnected from local market realities. However, limited vessel supply has prevented any sharp correction in prices across the sector.
“Market sentiment in India remains subdued, with recyclers increasingly concerned that prevailing price levels are not supported by underlying local market fundamentals,” the report stated.
India’s recycling market remained categorized as “soft,” with offered prices holding steady week-on-week at USD 430/LDT for container vessels, USD 415/LDT for tankers, and USD 400/LDT for bulk carriers. Scrap steel indicators also remained unchanged, with HMS 1&2 quoted at USD 390 per tonne and shredded scrap at USD 405 per tonne.
Industry participants indicated that recyclers continue to purchase vessels at elevated levels not because of stronger profitability, but to maintain operational continuity at Alang, the world’s largest ship recycling destination.
Meanwhile, Bangladesh witnessed a notable market correction after several weeks of aggressive bidding activity. According to Best Oasis, recyclers in the country stepped back from the market, causing prices to decline by approximately USD 25–30/LDT across all vessel categories.
The slowdown followed the announcement of Bangladesh’s national budget. Prior to the budget release, ship breakers had rushed to secure inventory amid fears of heavier taxation measures. However, those concerns eased after the government announced only a modest increase in VAT from BDT 1,200 to BDT 1,500.
“Buying appetite is now being expressed at notably lower and more realistic price levels,” the report observed.
Bangladesh’s market status also remained “soft,” with current pricing levels at USD 460/LDT for container ships, USD 450/LDT for tankers, and USD 425/LDT for bulkers.
Pakistan’s market, by contrast, remained relatively stable. Best Oasis reported no major changes in sentiment, pricing, or demand compared to the previous week. Local recyclers continued to maintain a cautious but steady approach while awaiting clearer market direction.
Pakistan remained the highest-paying destination among the major recycling markets, with prices standing at USD 480/LDT for container vessels, USD 470/LDT for tankers, and USD 460/LDT for bulk carriers. Market sentiment in the country was classified as “firm.”
The report suggested that fresh tonnage availability and broader market developments in the coming weeks may provide clearer signals for Pakistani buyers.
Türkiye continued to face weakening market conditions, with recycling prices trending lower amid deteriorating buyer confidence and sluggish demand. Recyclers in the region remained cautious and unwilling to commit aggressively to new purchases.
Turkey’s ship recycling prices fell 3.57 percent week-on-week, with levels quoted at USD 280/LDT for containers, USD 270/LDT for tankers, and USD 260/LDT for bulkers, making it the weakest-performing market among the major recycling destinations.
In the broader commodities market, crude oil prices declined sharply during the week. Brent crude settled at USD 80.37 per barrel, down USD 6.39, while WTI crude fell USD 7.85 to USD 76.46 per barrel.
Currency movements were mixed across key ship recycling nations. The Indian rupee strengthened slightly against the U.S. dollar to 94.45 from 95.11, while the Bangladeshi taka remained largely stable at 122.86. Pakistan’s rupee weakened marginally to 278.32, while the Turkish lira softened to 46.44 against the dollar.
Among reported sales this week, the motor tanker “Stolt Innovation,” with an LDT of 12,940, was sold on a delivered basis to Alang, India. The sale price, including bunkers remaining on board, was not disclosed.
Market observers believe that the persistent shortage of recycling candidates will continue to support pricing in the Indian subcontinent, even as underlying steel and freight market fundamentals remain under pressure.
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