Ship Recycling Markets Wait for Clearer Winds as Stability Masks Fragile Sentiment: BEST OASIS
Activity in the ship recycling markets across South Asia and Türkiye was largely muted, with only pockets of strength. India managed to extend its recent positive run in the vessel segment, though this momentum did not spill over into the local steel market. Bangladesh continued to face a quieter market, with interest largely confined to a few larger vessels at reduced prices, and sentiment was weighed down by the ongoing political backdrop. In Pakistan, a shortened trading week kept the pace slow and pricing largely unchanged, while Türkiye remained in a holding pattern with sentiment still fragile. For now, stability in prices across most locations is masking the underlying caution among market participants, who are watching for developments that could shift the outlook.
The US has extended its tariff truce with China by 90 days, delaying the next scheduled increase in duties but leaving the broader trade dispute unresolved. Earlier rounds of reciprocal tariffs, along with continuing frictions involving multiple trading partners, are still shaping global trade flows and cost structures. For shipping, the combination of temporary policy pauses and unresolved tensions means market conditions remain exposed to sudden changes in cargo demand and freight pricing. Any direct impact on ship recycling is uncertain at this stage, with the industry awaiting clearer signals on how these developments may affect vessel movements and disposal trends.
Exchange Rates:
USD / INR USD / BDT USD / PKR USD / TRY
This Week : 87.47 Previous Week : 87.69 Gain : 0.22
This Week : 121.47 Previous Week : 121.54 Gained : 0.07
This Week : 283.43 Previous Week : 283.56 Gained : 0.13
This Week : 40.89 Previous Week : 40.66 Lost : 0.23
Best Oasis Limited Weekly Ship Recycling Report 02
India
Market momentum continues to build, supported by stronger demand and improving sentiment.
Building on last week’s gradual recovery, the market has shown more noticeable improvement. The vessel segment is performing better, supported by firmer demand and higher activity levels.
In contrast, the local steel market (ship scrap) showed no signs of improvement from last week, holding at the same pace without any noticeable change.
Sentiment has improved as more participants anticipate an upward trend in the coming weeks, adding to the positive outlook.
S&P Global Ratings has upgraded India’s sovereign rating to BBB from BBB- with a stable outlook, citing the country’s strong post-pandemic recovery and status as one of the best-performing economies globally. The agency expects GDP to grow at an average of 6.8% annually over the next three years.
Beaching Dates
08 August to 16 August
20 August to 27 August
05 September to 14 September
Bangladesh
The market slides further amid no local buying requirements and prolonged political uncertainty.
The market went down this week, with recyclers indicating no requirement for local inventory or domestic sales. Buying interest is mostly limited to larger vessels, and even then, only at lower price levels.
Political uncertainty is holding back confidence, with the interim government in place until elections in February 2026. Stability is unlikely before mid-2026, once a newly elected administration is fully established.
With the outlook unclear, most buyers are expected to remain on the sidelines in the near term.
Beaching Dates
22 August to 25 August
07 September to 10 September
20 September to 23 September
Pakistan
The market shows no significant change amid limited activity and ongoing pressures.
The Independence Day holiday resulted in a short working week, keeping overall activity subdued. Vessel prices held steady, though there are signs they could be slightly lower. A clearer direction is expected to emerge in the coming week once market movements are assessed across the board.
The local market continues to face headwinds from persistent smuggling activity, which remains a key factor affecting domestic market stability.
Pakistan’s sovereign credit rating has been upgraded from Caa2 to Caa1, with the outlook revised to stable. The change reflects an improving external position, though it remains fragile and reliant on support from multilateral institutions such as the IMF and ADB.
Beaching Dates Throughout the month
Türkiye
The market stays flat with persistently weak sentiment and stagnant activity.
The market showed no change this week, with sentiment and activity staying very weak. Prices are still holding, but there is little momentum to suggest any near-term recovery.
Without fresh drivers to stimulate activity, this subdued pattern is expected to persist, with stability in prices offering only limited support. The Turkish lira weakened further while the main stock index slipped, showing continued pressure on local assets as investors wait for guidance from political leaders and the central bank.
Beaching Dates Throughout the month
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