Ship Recycling: Buying Interest Strong, But Tonnage Availability Limited
Hellenic Shipping News
he ship recycling market is lacking available tonnage, despite strong buying interest. In its latest weekly report, Best Oasis (
), a leading cash buyer of ships, said that “the Indian market remains reasonably stable; however, activity is limited by a continued lack of available recycling tonnage under current conditions. Local recyclers remain interested in acquiring units within their target price levels, though they are unable to compete with the stronger pricing offered in Bangladesh. Ongoing geopolitical tensions in the Middle East, along with restricted vessel movement and the unresolved Strait situation, continue to impact supply and sentiment. Market participants remain cautious, with meaningful activity likely only if buyers are able to match prevailing regional price levels”.
Best Oasis also said that in Bangladesh, “the market remains firm, with overall sentiment positive despite a slight softening in local market. Buyers continue to demonstrate strong interest in acquiring new tonnage, particularly for prompt delivery. Demand fundamentals remain solid, supporting a relatively high market compared to regional competitors. Market participants are closely monitoring upcoming national budget developments and geopolitical conditions for further direction. In Pakistan, no significant change in market conditions, with continued inactivity and no reported transactions. Ongoing geopolitical tensions and the Middle East conflict are severely impacting import activity, particularly from the UAE. Market sentiment remains uncertain and highly volatile, with price indications fluctuating daily. Buyers remain on the sidelines, awaiting greater clarity and stabilization before reengaging. Finally, the Turkiye market remains largely unchanged from last week, with price levels holding steady. Supply has slowed further, limiting fresh market activity and available opportunities. Buyer sentiment remains stable, though overall movement continues to be muted. With no major change in fundamentals, the near-term market direction is expected to remain steady unless fresh supply emerges”, the company’s report concluded.
Meanwhile, in a separate weekly report, shipbroker Intermodal said that “India and Pakistan continued on an underperforming tone last week, while Bangladesh maintained a firmer footing. Geopolitical concerns and tonnage supply constraints continued to weigh on sentiment, 5 weeks before the monsoon season steps in. India’s ship recycling market remained steady over the week, with activity subdued amid anticipation of additional candidates. Prices held firm within established ranges, but transactions were constrained by a persistent shortage of available tonnage. At the same time, ongoing disruption in the Strait of Hormuz continued to weigh on sentiment. The government has sought to mitigate LPG supply risks through increased imports from the United States and an agreement with Iran allowing eight vessels to transit the Strait and discharge LPG cargoes to India. Against this backdrop, the steel market remains in a sideways trend, lacking clear directional drivers at present.
The Gadani hub remains lethargic, with no transactions concluded as geopolitical uncertainty in the Middle East continues to weigh on sentiment. As the pre-monsoon period sets in, buyers are largely adopting a wait-and-see approach, with limited tonnage circulating and participants seeking clearer signals on underlying fundamentals. The key challenge is whether any deals can be concluded within the narrow window ahead of the monsoon, now 5 weeks away. The domestic steel market faces headwinds, as weakening demand for finished steel products is feeding through into softer price conditions. Bangladesh’s ship recycling segment retains a solid tone, supported by strong demand and improved financing conditions. Faster LC approvals from central bank have lifted sentiment, allowing more transactions to move ahead. In Chattogram, buyers continue to show firm interest in prompt tonnage, but vessel availability remains tight. Relative to its subcontinental peers, Bangladesh is in the strongest position, yet more deals would have been concluded if more candidates were available. In Turkey the market appears supply-constrained rather than demand-led, with stable sentiment masking weak activity. Fresh vessel arrivals will be key to any recovery going forward”, Intermodal concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
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