WWith the monsoon seasons approaching, ship recycling activity has been slower in India and other major markets. In its latest weekly report, the best oasis (www.best-oasis.com), a major cash buyer of ships, said, “The Indian market remains weak this week, with continued shortfalls in sales activity and lower prices recorded across all ship segments, indicating broadly weak market sentiment. The near-term outlook is negative, with the onset of the monsoon season expected to further slow yard operations – a seasonal headwind that typically impacts volumes during this period. Rising geopolitical tensions along key trade routes are adding to uncertainty, with Potential disruptions in vessel availability and deal flow to the Indian subcontinent reduce India’s price competitiveness, increasing the risk of near-term market share losses for Pakistan, and this trend is expected to continue if current conditions remain unchanged.
Source: Best Oasis
Best Oasis commented on the market in Bangladesh, saying, “This week’s market focus was on the FY26-27 National Budget Speech, with industry stakeholders reviewing the announcements and assessing the implications for recycling operations. Initial reports suggest a tariff increase of 300 Bangladeshi Taka (about US$2.40); further impact analysis is underway. Despite the budget uncertainty, market sentiment in Chittagong remains positive, with local crushers actively seeking Finding New Tonnage Solutions at Competitive Price Levels Market sentiment in Pakistan remains strong, with strong demand and stable prices across vessel segments All crushers are actively searching for vessels, reflecting high appetite across the market Local availability of panels and scrap remains constrained by supply disruptions attributed to ongoing conflict in Iran Finally, Turkish market sentiment remains flat to slightly weak, with limited activity and prices remaining largely unchanged for several weeks in a row to support stable regional pricing, compared to Turkey. There is an existing Indian subcontinent destination, with owners preferring subcontinent destinations in the absence of specific regulatory or environmental requirements.
Meanwhile, in a separate report, shipbroker Intermodal said, “Subcontinent hubs have adopted a more cautious tone as the market enters the monsoon season across the Indian subcontinent, with monsoon weather conditions expected to disrupt ship operations and limit productivity. At the same time, participants are closely monitoring developments in the Middle East, where a potential peace agreement and normalization of trade flows could reshape sentiment. Lower energy prices would provide relief to the subcontinent’s economies, given their heavy reliance on Gulf energy exports, while… Lower fuel costs and possible easing in freight rates, with lower risk premiums, could support recycling activity. In India, market conditions remain weak, with activity likely to decline further during the monsoon period and the domestic steel backdrop remaining weak, with sluggish demand and lower prices continuing to weigh on margins.
Source: Multimedia
On the macroeconomic front, the government imposed limits on daily diesel purchases to manage energy-related pressures and contain import costs. However, India would benefit materially from a potential peace deal and normalization of flows through Hormuz, as lower energy prices would ease external cost pressures. Chattogram witnessed a positive week, supported by a good line-up of candidates and active buying interest from recyclers despite the monsoon period. In the steel market, liquidity constraints continue to weigh on sentiment, although steel plate prices remain stable. On the other hand, the newly announced national budget proposes a 19% increase in public spending, which is expected to boost demand and provide a positive boost to the economy. The Pakistani ship recycling market remains relatively well positioned within the Indian subcontinent, supported by competitive pricing, a flexible rupee and limited candidate availability. However, core activity remains constrained by sluggish steel demand and cautious mill purchases. The shipbroker concluded that the Budget’s tax relief could provide some indirect support, although persistent economic headwinds and high inflation continue to weigh on the outlook.
Nikos Rousanoglou, Global Hellenic Shipping News
