As the South Asian monsoon season approaches, the pace of dismantling operations in India and other major shipbreaking markets has slowed. Best Oasis, a leading cash buyer of end-of-life vessels, stated in its latest weekly report: “The Indian shipbreaking market remained sluggish this week, with quiet trading across all vessel types, a broad decline in demolition quotes, and weakening overall market sentiment. Short-term market prospects are under pressure, and the arrival of the monsoon season will further drag down shipyard operational efficiency, with seasonal factors continuing to suppress demolition volumes. Geopolitical conflicts on key maritime shipping routes continue to escalate, increasing market uncertainty, which may affect the supply of vessels for demolition and transaction volumes in South Asia. The competitiveness of Indian shipbreaking quotes continues to decline, risking market share being seized by Pakistan; if the current market environment does not improve, this trend may persist.”
This week, the core focus of the Bangladesh market is the national fiscal budget proposal for the 2026-2027 fiscal year, with industry participants scrutinizing the policy’s impact on shipbreaking operations clause by clause. Preliminary information indicates an increase of 300 Taka (approximately 2.4 USD) in the import duty for shipbreaking, with the subsequent impact of the policy still under evaluation. Despite the uncertainty in budget policy, sentiment in the Chittagong market is positive, with local shipbreaking companies actively bidding to acquire end-of-life vessels.
The Pakistan market fundamentals are firm, with strong demand for demolition across all vessel types and stable quotes; all shipbreakers are actively seeking vessels, reflecting a strong industry willingness to acquire. However, due to the conflict with Iran, there is a shortage of steel plates and scrap steel supply, constraining local raw material availability.
The Turkish market is generally stable but weak, with quiet trading and virtually no change in quotes over recent weeks; buyers favor only large vessels, while small end-of-life ships are largely ignored. Capacity at European domestic shipbreakers is near saturation, supporting regional demolition price stability. Compared to South Asia, Turkish shipbreaking quotes remain at a long-term disadvantage; unless there are special environmental or regulatory mandatory requirements, shipowners generally prioritize South Asian demolition ports.
Meanwhile, shipbroker Intermodal released another market report stating that major shipbreaking centers in South Asia have turned generally cautious due to the approaching monsoon season; seasonal adverse weather will disrupt shipyard operations and reduce demolition efficiency. Market participants continue to closely monitor the situation in the Middle East: if a peace agreement is reached and trade flows return to normal, it could reshape industry dynamics. South Asian countries are highly dependent on Gulf energy exports; a decline in international oil prices would ease economic pressures on these countries. Lower fuel prices and a reduced shipping risk premium are driving freight rates down simultaneously, which may instead stimulate demand for ship demolition.
