World’s leading cash buyers for ships heading for recycling, BEST OASIS, in their weekly ship recycling market report, opined that the market continues to face mixed sentiment across major recycling destinations, with cautious buying activity and fluctuating steel prices shaping overall trends. After several months of stagnation and soft sentiment across South Asia’s ship recycling hubs, the latest weekly trends indicate only marginal movement, with India showing faint signs of improvement amid global currency headwinds. While prices for scrap steel and ships for demolition remain largely unchanged, market participants are cautiously watching for signals of a potential rebound toward the end of the year.
In India, the market has finally shown the slightest sign of hope after a prolonged period of inactivity. Buyers and recyclers have observed marginal improvements in inquiries and negotiations, sparking cautious optimism across Alang’s yards.
However, the recent strengthening of the U.S. dollar has offset much of the potential positive impact of this shift. With the Indian rupee trading weaker at ₹88.74 per USD, compared to ₹87.73 the previous week, import costs have increased, squeezing recyclers’ margins.
Despite this challenge, the tone in India’s ship recycling sector is turning slightly more positive. Demand for scrap from domestic steel mills, although muted, has not worsened. HMS 1&2 (80:20) prices remain stable at USD /LDT, while shredded scrap holds steady at USD /LDT.
Market activity, however, remains subdued. Many recyclers are still operating at limited capacity, focusing on existing inventories rather than taking new deliveries. Industry participants believe that if the rupee stabilises and domestic steel consumption picks up post-Diwali, Alang could see renewed buying interest by the end of November.
For now, sentiment in India is described as firm but cautious, with ship recycling prices holding at USD /LDT for containers, USD /LDT for tankers, and USD /LDT for bulkers, all unchanged from last week.
In Chattogram, Bangladesh, the recycling market continues to move quietly, showing limited week-on-week variation. Local buyers remain hesitant amid modest domestic demand and tight credit conditions.
A notable exception this week was the sale of a large-sized tanker at an unusually high price, which drew attention across the market. However, industry insiders note that this isolated transaction is unlikely to set a new benchmark, as such high levels are considered unsustainable in the current environment.
The average market price for HMS 1&2 and shredded scrap stands unchanged at USD /LDT and USD /LDT, respectively. Recyclers are still negotiating cautiously, preferring smaller and mid-sized vessels that offer quicker turnaround and lower financing requirements.
Meanwhile, a positive development for the sector has been the progress of DASR (Designated Authorised Ship Recycler) certifications among Bangladeshi yards. Several yards have already received the certification, with more expected in the coming months.
This step signals Bangladesh’s continued efforts to align with global standards and move closer toward full compliance with the Hong Kong Convention for safe and environmentally sound ship recycling.
Recycling rates remain firm at USD /LDT for containers, USD /LDT for tankers, and USD /LDT for bulkers, indicating a stable yet restrained market.
The Pakistani market continues to face significant challenges, with demand for scrap steel at its lowest levels in recent months. Buyers at Gadani are struggling with falling domestic prices and intense competition from illegal imports.
Shredded steel prices have dropped further, adding downward pressure on recycling rates. Market insiders report that illegal imports of steel from Iran—offered at discounted prices—are increasingly disrupting local market dynamics. This influx has weakened domestic sales, undercut local mills, and eroded recyclers’ confidence.
As a result, activity levels remain depressed. The local rupee has also weakened slightly against the U.S. dollar, slipping from PKR 282.63 to PKR 283.06, reflecting continued macroeconomic stress.
Prices for ship recycling have softened slightly, with containers averaging USD /LDT, tankers at USD /LDT, and bulkers at USD /LDT, all unchanged from last week but showing weak buying interest.
Traders warn that without government intervention to curb unauthorised imports and stabilise the steel supply chain, Pakistan’s ship recycling industry may continue to lag behind its regional peers.
In Turkiye, the recycling market has maintained its typical pattern of stability, mirroring the tone seen over the past several weeks. Both buyers and sellers are adopting a wait-and-watch stance, consistent with the country’s historically steady market rhythm.
Prices for scrap have held firm, with HMS 1&2 trading at USD /LDT and shredded material at USD /LDT. While these levels offer little excitement, they provide reassurance to market players who prefer predictability amid global volatility.
The Turkish lira showed a minor improvement, trading at 42.00 per USD versus 42.02 last week. With stable exchange rates and no major domestic disruptions, Turkiye’s ship recycling market remains firm at USD /LDT for containers, USD /LDT for tankers, and USD /LDT for bulkers.
Industry observers note that Turkiye’s recycling activity largely mirrors European regulatory and environmental standards, focusing on green recycling and sustainability initiatives rather than high-volume tonnage.
Global currency fluctuations continue to play a decisive role in shaping regional recycling dynamics. The U.S. dollar’s strength against key South Asian currencies—especially the Indian rupee and Pakistani rupee—has raised import costs and reduced profit margins for recyclers.
Commodity-wise, Brent and WTI crude oil have seen limited movement, maintaining general stability across energy markets. The static oil trend has helped steady operating costs but has not yet translated into stronger demand for steel or recycled materials.
Only one notable vessel transaction was recorded this week. The JIN HAI YU, a bulker with a light displacement tonnage (LDT) of 8,764, was delivered for internal recycling in China. The sale price has not been disclosed, but the transaction highlights China’s continued interest in managing its own tonnage recycling rather than exporting vessels to South Asian yards.
Across the global ship recycling landscape, the tone remains one of caution.
India’s faint signs of optimism could gain traction if exchange rates stabilize and domestic steel demand rises. Bangladesh’s gradual alignment with international standards through DASR certification is encouraging, though the immediate market impact remains limited.
Pakistan faces an uphill battle against weakening demand and regulatory loopholes, while Turkiye continues to demonstrate predictable resilience.
For now, with stable scrap prices and steady exchange rates, the regional ship recycling markets remain in a holding pattern—waiting for clearer economic signals before the next major move.
