TRecycling market sentiment improved last week, despite adverse conditions. In its latest weekly report, the best oasis (www.best-oasis.com), a major cash buyer of ships, said, “The Indian ship recycling market witnessed improved activity this week, despite a significant rise in the value of the US dollar. While the strong dollar continues to pressure recyclers, the domestic market, which was expected to improve over the past two weeks, has finally rebounded in a healthy way. Accordingly, price levels for the week have increased by about US$ 8-10, and the market is expected to strengthen further next week. On the regulatory side, the Gujarat Maritime Board (GMB) has directed The Alang Ship Recycling Yard allocates 50% of the annual fixed plot fee on a pro-rata basis until 18 July 2026, while the association continues its efforts to secure relief for the remaining fees and an interest-free extension until 30 April to pay the balance.
Source: Best Oasis
Best Oasis added that the Bangladeshi market remains buoyant, with strong buying interest for vessels between 10,000 and 15,000 heavy tons. Sentiment also improved on the back of a more supportive political environment, with the new government seen as business-friendly, giving buyers more confidence in new acquisitions. Another major factor supporting the market is the limited availability of HMS 1 and 2 from the US and other assets. With domestic scrap prices remaining strong in Bangladesh, there is less incentive to import materials, which has further supported sentiment and pushed the market higher. Pakistan’s ship recycling market showed improved activity this week, mainly due to less availability of scrap. Scrap imports from the Middle East have remained suspended for the past four weeks, supporting the recent rise in market activity. In addition, the flow of materials across Iran’s land borders has also stopped, adding to the supply pressure. As a result, ship prices in the region rose, although this increase was largely due to shortages. Finally, the Turkish market recorded an increase of about $4 in imports and about $5 in local prices this week. So far, this has not translated into any noticeable change in ship prices or recycling activity. Overall market conditions remained largely unchanged from the previous week. “Next week will show whether the recent rise in prices will begin to impact ship prices and activity.”
Meanwhile, in a separate report, shipbroker Intermodal noted, “Disruptions in steel and energy flows and geopolitical concerns coupled with a limited supply of candidates shaped conditions in ship recycling markets last week. In India, sentiment improved despite weak activity, supported by a strengthening rupee against the US dollar after a series of interventions by the Reserve Bank of India. The stronger currency adds purchasing power to ship recyclers, who obtain candidates in US dollars while selling their recycled steel in rupees. With However, the flow of recycling candidates remains insufficient, partly due to the resilience of shipping markets supported by geopolitical uncertainty in the Middle East and a limited volume of candidates, coupled with reported difficulties faced by shipyards in securing fuel for operations. The domestic steel market is showing strength, with prices rising.
Source: Multimedia
This upward move appears to be mostly supply driven, supported by lower availability of raw materials, due to limited production from ship breaking activity and limited steel imports from the US. In Pakistan, the market witnessed a slight increase in activity compared to the previous week. Trading of some dry bulk candidates has sparked interest, with ship recycling companies boosting offers to be more competitive. The steel market is facing cautious sentiment, as constrained supply conditions lead to higher prices. Supply remains the decisive variable in assessing market expectations. While fundamentals have improved, a more sustainable recovery will depend on owners moving to commit to scrapping ships at prevailing price levels. “The Türkiye sector has remained flat in the past week, however, rising energy costs are impacting the economics of the yard at Aliaga,” Intermodal concluded.
Nikos Rousanoglou, Global Hellenic Shipping News
