TThe ship recycling market made gains last week, as supply remained short. In its latest weekly report, Best Oasis (www.best-oasis.com), a leading cash procurement company for ships, said, “The Indian market strengthened during the week due to limited availability of steel sheets, with cutting activity slow and many vessels remaining offshore. This improvement is expected to be temporary, with conditions likely to change over the coming weeks. Steel demand remains very weak at the end product level. Buyers remain keen to acquire vessels but continue to have difficulty competing with offers placed From other recycling destinations Dark Fleet vessels continue to be recycled on Indian shores, and since India remains the only destination that accepts such vessels, it has a significant advantage over competing markets.
Source: Best Oasis
Best Oasis added that in Bangladesh, “domestic market conditions weakened over the week, although healthy inquiry into recycling candidates continued. Buyers are showing greater interest in bulk and other vessels without compliance concerns. Compliance risks remain a major challenge following the imposition of post-arrival sanctions on the tanker and the completion of clearance processes, prior to reaching shore. These developments are putting significant pressure on both ship recyclers and cash buyers. In Pakistan, market conditions have remained largely unchanged.” Large, with recyclers actively searching for vessels but very few candidates being offered Local markets There is still a shortage of scrap, which supports healthy conditions and good demand from buyers, and Pakistani buyers are still unable to compete with Bangladesh, but are currently in a position to compete with India Finally, in Turkey, “Aliaga’s ship recycling market remained largely unchanged over the past week, with sentiment continuing to be affected by the weakness of the Turkish lira and limited availability of attractive recycling candidates. There has been little sign of any significant recovery, and the market continues to lag behind the Indian subcontinent in terms of competitiveness. It is expected that most traditional recycling candidates will prefer destinations in South Asia. However, Aliaga continues to maintain its established role as a niche market for vessels requiring EU-certified recycling facilities and Basel Convention compliance.”
Meanwhile, in a separate weekly report, shipbroker Intermodal said: “In Alang, the market stabilized last week due to tightening steel supplies, as a monsoon-induced slowdown in activity reduced plate volumes. However, the recovery varies by product and could be fragile, given tepid steel demand and the absence of a clear catalyst in the sector. Meanwhile, India’s willingness to accept sanctioned ships, in contrast to its subcontinent counterparts, is partly offset by Sentiment weakened the local currency against the US dollar last week. On the macro front, June inflation unexpectedly rose to its strongest reading since late 2024, as earlier oil disruptions trickled down to transportation costs, which were exacerbated by food price inflation in Chattogram during another quiet week, with the standoff between willing buyers and a reluctant market continuing.
Source: Best Oasis
Tonnage inquiry remains good, but appetite is becoming increasingly selective, with bulk carriers preferring exposure-free units to comply after a carrier cleared all the formalities only to appear on the sanctions list before arriving at the yard leading to increased caution among recyclers and cash buyers alike. Steel trade is largely dormant, although activity picks up once the floods recede, and mills expect stronger demand after the monsoon. Gadani stock held steady, and its fundamentals were little changed from the previous week: candidates remain scarce while buying appetite remains steady, and a persistent shortage of scrap continues to support healthy buyer demand. Recyclers’ offers were not affected. Domestic steel prices improved amid improved sentiment, although actual consumption has yet to follow. The optimism is partly based on fiscal measures, with lower property taxes and subsidized housing schemes expected to lift construction work after the monsoon. On the other hand, geopolitical tensions in the Middle East are raising oil prices, which is putting increasing pressure on Pakistan and much of the region. The shipbroker concluded that Türkiye remained weak, with a narrow pool of candidates and a weak currency eroding purchasing power and sagging morale.
Nikos Rousanoglou, Global Hellenic Shipping News
