Ship Recycling Markets See Diverging Fortunes as Currency Volatility: BEST OASIS
Global ship recycling markets witnessed contrasting trends over the past week, marked by currency volatility in South Asia, tight tonnage availability in Bangladesh, steady conditions in Pakistan, and cautious sentiment in Türkiye. According to the latest weekly ship recycling market report issued by leading cash buyer BEST OASIS, regional fundamentals continue to diverge, even as global steel and scrap dynamics exert a common influence on prices and buyer appetite.
India: Currency Swings Add to Market Uncertainty
India’s ship recycling market endured a “roller coaster ride” during the week, largely driven by sharp fluctuations in the exchange rate. The weakening of the Indian rupee against the US dollar injected uncertainty into pricing and negotiations, resulting in sudden upward and downward movements in offered levels.
Demand from end buyers remains broadly fair, suggesting that recyclers are still willing to commit to tonnage. However, the resale steel market continues to pose challenges. One of the most telling indicators of stress is the extension of credit terms. Where buyers previously settled payments within a day, credit cycles have now stretched to as long as 10 days, underscoring persistent weakness in the wider steel economy.
Imported scrap prices remain elevated, preventing any major downward correction in domestic ship recycling prices. Nevertheless, the underlying softness in the local market has not disappeared. Recyclers remain cautious, balancing higher input costs with subdued steel demand, particularly from construction and infrastructure-linked segments. As a result, the Indian market is described as “soft,” with limited room for aggressive bidding in the near term.
Bangladesh: Tight Supply Fuels Competition
In sharp contrast, Bangladesh continues to experience a tight market environment. Buyers remain keen to secure fresh tonnage, but vessel availability is extremely limited. This supply squeeze has created a sense of urgency, with demand clearly outweighing supply.
With fewer ships available for recycling, market appetite is steadily building. Industry participants expect that higher-priced sales could emerge in the coming weeks as buyers compete for the limited units on offer. The Bangladeshi market is currently categorized as “firm,” reflecting both strong buying intent and constrained supply.
Historically, such imbalances have led to sudden price spikes when a cluster of vessels becomes available. While recyclers remain disciplined for now, the report suggests that competitive bidding could soon test upper price thresholds if tonnage scarcity persists.
Pakistan: Steady and Unchanged
Pakistan’s ship recycling market remained largely unchanged during the week, mirroring conditions seen in the previous reporting period. Market sentiment remains stable, with no significant developments influencing pricing or buyer interest.
Recyclers in Gadani continue to operate cautiously, maintaining existing price levels amid steady domestic demand and relatively stable currency conditions. The market is described as “soft,” but without the volatility seen in India or the supply-driven pressure evident in Bangladesh.
Türkiye: Cautious Amid Rising Supply
The Turkish market experienced a slight decline, with import prices easing by approximately USD 2 during the week. This modest correction was attributed primarily to increasing supply in the Aliaga region, which has weighed on buyer sentiment.
Recycling yards in Türkiye are not aggressive with their pricing, reflecting a cautious outlook. With supply conditions continuing to exert pressure, no near-term increase in buyers’ offers is expected. The Turkish market remains soft, and sentiment suggests a wait-and-watch approach until clearer signals emerge from the steel and scrap sectors.
Exchange Rates and Commodities
Currency movements played a key role across regions. The Indian rupee weakened to 90.95 against the US dollar, compared with 90.61 in the previous week, marking a loss of 0.34. The Bangladeshi taka also edged lower to 122.35 from 122.30. In contrast, the Pakistani rupee showed a marginal gain, strengthening to 279.55 from 279.70, while the Turkish lira weakened to 43.84 from 43.63.
Crude oil prices showed notable gains, with Brent crude rising by USD 4.94 and WTI crude increasing by USD 4.55 over the week. Higher energy prices typically translate into increased production costs for steelmakers, indirectly influencing ship recycling economics.
Scrap and Recycling Prices
Prices for HMS 1&2 (80:20) and shredded scrap showed mixed trends. India reported HMS prices at USD 368 per tonne and shredded at USD 372, reflecting a week-on-week increase of 1.38%. Bangladesh and Pakistan both recorded HMS at USD 372 and shredded at USD 376, up 1.77%. Türkiye, however, saw HMS at USD 375 and shredded at USD 395, with a marginal decline of 0.26%.
In terms of ship recycling pricing, container vessels in India are being quoted around USD 425 per LDT, tankers at USD 410, and bulkers at USD 395. Bangladesh continues to command slightly higher levels, while Türkiye remains significantly lower, with container units around USD 290 per LDT.
Vessels Sold This Week
Several vessels were reported sold for recycling during the week, though most prices remained undisclosed. Notable transactions included the motor tanker Vilamoura (24,319 LDT) delivered to Aliaga, Türkiye, and multiple bulkers such as ASB Bonito, Dimple, and Lily-Ha delivered to Alang, India, and Aliaga. Other sales included a ro-ro vessel, a reefer, a multi-purpose vessel, and a large floating dock sold on an as-is basis in Singapore.
Outlook
The latest assessment from BEST OASIS highlights a fragmented global ship recycling landscape. Currency volatility, steel market weakness, and tight tonnage availability are shaping regional outcomes in different ways. While Bangladesh may see upward price pressure due to supply constraints, India and Türkiye remain cautious, and Pakistan continues on a steady course. The coming weeks are likely to hinge on currency stability and the flow of available vessels into recycling yards worldwide.
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