Ship Recycling: Market remained under pressure with most locations reporting limited activity: BEST OASIS
The ship recycling market remained under pressure this week, with most locations reporting limited activity and softer pricing. In India, the market continued to weaken, with prices slipping slightly amid low demand, tight working capital, and hesitancy from buyers due to ongoing volatility. In Bangladesh, activity stayed subdued with no major sales reported. Market participants are awaiting clarity on NOC issuance, while speculation around a possible extension for non-HKC yards is ongoing. Demand persists for mid-sized units, though financial and geopolitical factors remain in focus. In Pakistan, conditions remained flat, though recent domestic price cuts have added pressure on the recycling sector. Liquidity constraints are growing, and the price environment remains fragile. In Türkiye, the downtrend continued for another week, with both import and local scrap prices declining. Broader economic stress and monetary tightening are contributing to cautious sentiment.
Ahead of the Hong Kong Convention’s entry into force in June 2025, BIMCO’s Ship Recycling Alliance, along with key industry stakeholders, has submitted a joint paper to the Basel Convention’s COP. The paper calls for the removal of regulatory overlaps between the Basel and Hong Kong Conventions, which could otherwise disrupt cross-border movements of end-of-life ships. The coalition urges the creation of a unified global framework to support safe, transparent, and environmentally responsible ship recycling.
With critical policy decisions expected in the coming months, all eyes are now on international regulators to ensure alignment and clarity before implementation begins.
Exchange Rates:
USD / INR USD / BDT USD / PKR USD / TRY
This Week : 85.43 Previous Week : 85.39 Lost : 0.04
This Week : 121.44 Previous Week : 121.32 Lost : 0.12
This Week : 281.28 Previous Week : 280.04 Lost : 1.24
This Week : 38.19 Previous Week : 38.01 Lost : 0.18
Best Oasis Limited Weekly Ship Recycling Report 02
India
Cautious sentiment grows as financial pressure and pricing uncertainty continue.
The market continues to soften, with the market going down by approximately 6–7 USD, reflecting a broader slowdown in activity. Limited working capital and slow activity in second-hand steel mills are affecting overall market sentiment.
Although there is genuine interest from buyers, ongoing price volatility and financial pressure have made them cautious. Frequent revisions have added uncertainty, pushing buyers to delay decisions and wait for greater price stability.
Adding to the cautious sentiment, Moody’s Ratings has trimmed India’s 2025 GDP growth projection to 5.5%–6.5%, slightly below its earlier estimate of 6.6%. The agency cited risks from unpredictable US tariffs, which could disrupt business planning, stall investment flows, and elevate the risk of a global economic slowdown—all of which could indirectly influence demand and confidence in the recycling sector.
Beaching Dates
26 April to 03 May
11 May to 17 May
Bangladesh
The market stays cautious; BSRB completes yard inspections; Clarity on NOC expected soon.
The market has remained subdued over the past two weeks, with no aggressive sales activity in the last 14–15 days. Although a few vessels have been concluded, there has been no update on the issuance of NOCs so far. The BSRB team has been conducting yard visits over the past few days, and with their return to Dhaka today, an official decision regarding the NOC is expected to emerge next week.
Industry sources suggest that non-HKC-compliant yards may receive an extension until June, although no official announcement has been made. Meanwhile, demand continues for mid-sized vessels (10–15k LDT), while larger units remain challenging due to finance and LC constraints. Additionally, the geopolitical situation between Bangladesh and China is drawing attention and may have an influence on broader market sentiment.
Beaching Dates
26 April to 30 April
10 May to 14 May
Pakistan
The market remains quiet, as tightening liquidity across the region adds to pressure. The local market remains unchanged, with no new sales or price movements reported this week. However, pressure on the ship recycling industry has intensified after wire rod manufacturers reduced prices by approximately 18 USD per ton, a move driven by low demand and sluggish downstream activity.
The price level is currently similar to that of Alang. Additionally, liquidity pressure across the subcontinent is beginning to weigh on sentiment. Financial constraints are increasing, and this could impact prices and buyer confidence in the coming days.
Beaching Dates Throughout the month
Türkiye
The market continues to weaken amid broader financial tensions.
The market is down again this week, continuing last week’s trend. Import prices declined by 20 USD, and local prices dropped by 10 USD.
Türkiye’s central bank has raised its interest rate to 46%, ending the rate cuts it started last December. The decision reflects mounting pressure from U.S. trade tariffs, domestic political tensions, and a noticeable withdrawal of investor confidence. The central bank also reported a net loss of ₺700.4 billion (around 21.7 billion USD) for 2024, its second-largest loss ever, mainly due to the high cost of managing inflation through elevated interest rates.
Beaching Dates Throughout the month
