Ship Recycling Markets Hold Firm Amid Currency Pressures and Limited Tonnage Availability : BEST OASIS
Global ship recycling markets displayed mixed but largely resilient trends over the past week, according to the latest weekly report by BEST OASIS, one of the world’s leading cash buyers of ships for demolition. While currency volatility, softer steel prices and regional financing constraints continued to shape sentiment, demand for recycling candidates remained steady, particularly in the Indian subcontinent, supported by a shortage of available tonnage.
India: Firm Sentiment Despite Currency and Steel Headwinds
India remained the most stable and confident market this week, even as the US dollar strengthened further against the Indian rupee. The USD/INR exchange rate weakened to 91.90 from 90.76 a week earlier, reflecting continued depreciation pressure on the local currency. Traditionally, a weaker rupee poses challenges for recyclers due to higher import costs; however, the market absorbed the impact with little disruption.
Steel plate prices corrected by around 2–4% across most categories, mirroring the softer tone in domestic steel markets. Despite this decline, buyer appetite stayed firm, underpinned by improved local confidence and a lack of suitable recycling candidates. BEST OASIS noted that the dearth of available tonnage has helped maintain price stability, preventing sharper corrections in offered levels.
Indicative recycling prices in India stood at about USD 420 per light displacement ton (LDT) for container vessels, USD 405/LDT for tankers and USD 390/LDT for bulk carriers, unchanged week-on-week.
Bangladesh: Cautious Optimism Ahead of Elections
Bangladesh’s ship recycling market remained relatively slow, although early signs of renewed activity began to emerge. With national elections expected in February and growing expectations of a stable post-election government, buyers have gradually started re-entering the market to assess potential acquisitions.
However, BEST OASIS cautioned sellers to remain careful, especially when offering larger vessels. Financing constraints continue to pose challenges in Bangladesh, often delaying or derailing the execution of high-value transactions. While prices remained firm, the ability to conclude deals—particularly for large LDT vessels—depends heavily on access to credit.
Bangladesh reported a slight week-on-week improvement of 1.24% in bulker pricing, with indicative levels at around USD 425/LDT for containers, USD 415/LDT for tankers and USD 380/LDT for bulkers.
Pakistan: Competitive Disadvantage Persists
Pakistan continued to lag behind its regional peers, with buyer participation remaining limited. Only a handful of recyclers were active in the market, and even these buyers struggled to secure meaningful tonnage. According to BEST OASIS, Pakistan’s main challenge lies in its inability to compete with the pricing levels offered by India and Bangladesh.
The report suggested that unless there is a significant improvement in market infrastructure, financing mechanisms and overall competitiveness, Pakistan is likely to remain behind the region in terms of achievable recycling prices. Current indicative levels hovered around USD 425/LDT for containers, USD 410/LDT for tankers and USD 400/LDT for bulk carriers, with the overall market tone described as soft.
Türkiye: Stable but Uneventful
Türkiye’s recycling market followed its familiar, subdued trading pattern. Import prices softened marginally by around USD 1 over the week, while local market conditions remained broadly unchanged. With limited momentum and no material shifts in sentiment or pricing fundamentals, the Turkish market remained stable but quiet.
Indicative prices in Türkiye stood significantly lower than the Indian subcontinent, at approximately USD 290/LDT for containers, USD 280/LDT for tankers and USD 270/LDT for bulk carriers.
Recent Deals Highlight Selective Activity
Despite broader caution, several notable transactions were concluded during the week. These included the sale of the 9,453 LDT motortanker Quartz on an as-is Singapore basis at USD 435/LDT including bunkers, and the bulker An Shun delivered to Gadani, Pakistan, at USD 412/LDT. The LNG tanker Seapeak Mars, with an LDT of nearly 29,686, was sold on an as-is basis in Malaysia at USD 421/LDT, underscoring continued interest in specialized tonnage.
Overall, BEST OASIS concluded that while macroeconomic and regional challenges persist, the global ship recycling market remains underpinned by limited supply and steady demand, particularly in India and Bangladesh, offering a degree of resilience in otherwise uncertain conditions.
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