Ship Recycling: The Global Market Continues to Struggle: BEST OASIS
The global ship recycling market continues to struggle, with weak demand and declining prices across all key destinations. In India, conditions worsened as cheap imported steel flooded the market, preventing any recovery. Bangladesh saw recyclers buying at lower prices amid stalled development and political uncertainty, with demand unlikely to improve even with LC availability. Pakistan remained quiet, with minimal sales due to low prices, though some buyer interest is emerging at current levels. Türkiye experienced a slight uptick in import prices but faced further local market declines, with major steel mills halting purchases due to weak demand. Overall, market sentiment remains negative, with further declines expected.
Global growth is projected at 3.3% for both 2025 and 2026, slightly below the 3.7% average from 2000 to 2019. The 2025 forecast remains largely unchanged from October 2024, with stronger growth in the U.S. offsetting slower performance in other major economies. Global inflation is expected to decline to 4.2% in 2025 and 3.5% in 2026, with advanced economies returning to target levels sooner than emerging markets. While risks to the medium-term outlook are tilted to the downside, the near-term outlook shows mixed risks, with positive growth prospects in the U.S. and challenges in other regions. Effectively managing these risks will require careful policy decisions, global cooperation, and structural reforms to foster long-term stability and growth.
India
The market continues to decline under mounting pressure from cheap imports.
The market remained similar to the previous week, with no signs of improvement. However, instead of stabilizing, it declined even further.
The growing influx of cheap imported steel is believed to be a major factor behind this continued downturn, preventing any chance of recovery. As a result, the market remains under pressure and is struggling to sustain itself.
India plans to expand its port capacity to 10,000 million tonnes annually by 2047 under the Viksit Bharat 2047 vision, aiming to become a global shipping hub. Key projects include Vadhavan Port in Maharashtra, which is set to be the largest container facility, and Galathea Bay in Great Nicobar, which is focused on trans-shipment trade.
Beaching Dates
28 January to 04 February
10 February to 16 February
26 February to 05 March
Bangladesh
Price for Recycling Ships in Bangladesh Market struggles as recyclers hesitate amid weak demand and Regulatory uncertainty.
The local market remains weak, with recyclers opting to buy at lower prices due to reduced demand.
The lack of an elected government and the presence of an interim administration have stalled development, leading to a collapse in demand. Even if recyclers secure LC facilities from banks, demand is unlikely to improve.
Non-green or non-HKC yards are trying to capitalize on the situation, believing that the ministry’s extension—originally set for November 14 and later extended to January 31— will not be extended further.
Beaching Dates
14 February to 17 February
28 February to 03 March
14 March to 17 March
Pakistan
Price for Recycling Ships in Pakistan The market is nearing the bottom as buyers gradually start to show interest.
The market is very quiet, with almost no sales happening because sellers find the current prices too low. There is little demand for end products, and only a few buyers are making offers, taking a risk. However, we seem to be near the lowest point, where buyers are beginning to show interest. This price level is where the local market can start to provide some support.
Pakistan’s central bank is expected to cut its interest rate by at least 1%, its sixth straight reduction as inflation slows. Since June 2024, rates have dropped 900 bps from 22%, making it one of the most aggressive cuts among emerging markets, surpassing the 625 bps cut in 2020.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye Market sees modest import gains, but local prices decline amid weak demand.
The market saw a slight improvement of about USD 6 in imports, but the local market remains weak, dropping another USD 10. Buyers and steel mills expect prices to decline further, keeping sentiment negative. A further drop is likely in the coming weeks, with two major steel mills halting purchases until further notice due to insufficient demand.
The central bank, in line with market expectations, announced a 250-basis-point reduction in its benchmark one-week interest rate. This decision was driven by a decline in core inflation recorded in December, indicating a potential continued decrease in the country’s consumer price index throughout 2025.
Beaching Dates Throughout the month
