Ship Recycling Markets Remain Firm With Bangladesh Leading<\/p>\n
Hellenic Shipping News<\/p>\n
espite challenging overall conditions, the ship recycling markets remained firm, with a clear edge from Bangladeshi recyclers. In its latest weekly report, Best Oasis (<\/p>\n
), a leading cash buyer of ships, said that \u201cthe Indian local market remains good, with overall sentiment holding steady. However, the exchange rate remains very high, restricting India\u2019s ability to compete with Bangladesh and Pakistan on regular tonnage. As a result, India is expected to remain limited mainly to specialized assets, while bulkers and tankers are likely to continue moving toward Bangladesh and Pakistan where pricing remains more competitive\u201d.<\/p>\n
Meanwhile, \u201cthe Bangladesh market remains firm, although local market conditions have softened compared to the strong momentum seen over the past two weeks. Buyers are still keen to acquire vessels, but their appetite has become more cautious. Heavy rainfall in Chattogram has affected activity and reduced immediate demand in the market. With the monsoon season approaching, prices are expected to remain within the current range, though sentiment may stay slightly negative over the next two to three months due to weather disruptions and slower demand. The Pakistan market has seen no major change this week, with sentiment holding at similar levels to last week. Buyers remain keen to acquire tonnage, but Pakistan is still unable to compete with Bangladesh on pricing. The market is supported by a shortage of imported scrap and shredded steel from the Gulf region following recent regional tensions. This shortage has given the market a stronger tone, although the active buyer base remains limited. A recent vessel sale reported at around USD 456\/LDT has further supported firm price ideas in the market. Finally, the Turkiye market remains largely unchanged this week, with no major movement in local sentiment or price levels. Activity continues at a steady pace, with the market holding similar to previous levels\u201d, Best Oasis concluded.<\/p>\n
In a separate note, shipbroker Intermodal commented that \u201cthe gap between diplomatic motion and market reality defined last week\u2019s landscape, affecting ship recycling market dynamics. A preliminary US-Iran framework briefly raised hopes of Hormuz normalization, yet freight markets told a different story, with earnings on high levels and owners unwilling to phase out tonnage. Conditions at Alang remained under pressure, with deteriorating steel fundamentals compounding an already difficult currency landscape. The domestic steel market weakened broadly, with inventory accumulation by mills dampening production. Despite a partial rupee recovery, the exchange rate continues to erode India\u2019s competitiveness, pricing Alang out of mainstream tonnage. Bangladesh retains its Subcontinent lead, though the tone has measurably cooled from recent weeks. Plate prices have retreated after appearing well-anchored through much of the quarter, weighing on recycler sentiment.<\/p>\n
Buyer appetite has turned more reticent, shaped by the approaching monsoon, early rainfall already disrupting Chattogram operations, and a softer steel segment. The Taka has held steady and the LC trade finance conduit continues to operate without meaningful friction. Yet with the seasonal window narrowing and recyclers growing increasingly hesitant, the near-term outlook carries a distinctly cautious undertone. At Gadani, the market held steady through the week, the overall landscape little changed from the previous week. The domestic steel market has retained a degree of firmness, underpinned by lack of scrap imports from the Arabian Gulf, a direct consequence of the Hormuz closure. Appetite to acquire tonnage remains genuine, with supply rather than demand the binding constraint. The broader economic backdrop, however, has grown more strained, as the country faces intense inflationary pressures, casting a shadow over economy\u2019s outlook. Turkey remains largely sidelined, with a sliding lira, reaccelerating inflation and sluggish domestic steel demand offering little encouragement\u201d.<\/p>\n
Nikos Roussanoglou, Hellenic Shipping News Worldwide<\/p>\n
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