The ship recycling market has been on a roll over the past week, gaining further momentum. In its latest weekly report, Best Oasis, a leading cash buyer of ships said that “the Indian recycling market remained quite buoyant during the week, supported by a substantial improvement in local market conditions. As previously reported, the reduced availability of steel scrap, following the crackdown on smaller scrap suppliers over GST-related issues, continues to tighten supply and support domestic steel and scrap prices. This has translated into improved recycling sentiment, with buyers maintaining healthy interest and the market showing a firmer undertone. The Bangladesh recycling market remained moderate over the week, with local conditions showing little change. Buying interest remains available, although sentiment continues to lack strong conviction. Recyclers are maintaining a measured approach, with no significant upward momentum seen in the market. Overall activity remains steady, with local market fundamentals offering limited support to prices”.
According to Best Oasis, “the Pakistan recycling market remained relatively stable over the week, although prices have eased slightly from the higher levels achieved previously. The last couple of vessels have reportedly concluded at softer levels, with fewer buyers showing interest at current pricing. Local scrap prices have also moved lower, creating some concern among recyclers and weighing on overall sentiment. Buyers are therefore approaching new opportunities with greater caution, and the market is presently showing a slightly softer tone. Finally, the Turkish recycling market remained steady over the week, with no significant change in overall pricing or sentiment. Vessel supply continues to be influenced mainly by regulatory requirements and vessel positioning, rather than by direct competition with the Subcontinent. Most yards remain well occupied for the coming months, keeping buyers selective and limiting aggressive bidding to better-quality tonnage. Import scrap prices improved by around USD 5, while local scrap prices remained broadly unchanged. The continued weakness of the Turkish lira remains a pressure point, but overall market conditions continue to hold relatively stable”, Best Oasis concluded.
Meanwhile, in a separate weekly report, shipbroker Intermodal said that “the Alang hub strengthened last week, supported by rising domestic steel prices, healthy buying interest and a firmer rupee. Goods and Services Tax (GST) enforcement has restricted scrap supplies from smaller operators, compounding limited imports. These conditions have lifted vessel bids, although offers remain less competitive than Pakistani and Bangladeshi levels. Separately, leading international shipping associations, including BIMCO, INTERTANKO and ECSA, have endorsed the proposed inclusion of two Indian yards on the European List, backing India’s efforts to meet European ship recycling standards. Final approval remains pending. Bangladesh’s recycling market remains stable, with yards processing previously purchased vessels while limited fresh arrivals support prices. Buyers are maintaining a measured approach after the monsoon, with no new sales reported this week despite continued interest in tonnage.
Meanwhile, safety practices face closer scrutiny following August’s fatal accident at Ferdous Steel’s Chattogram yard, where a toxic gas leak during cutting operations killed nine workers. The official investigation identified shortcomings in safety procedures and recommended tighter controls, which could lead to stricter requirements for recyclers. Gadani is settling into a more measured pace as recent arrivals meet buyers’ immediate requirements. Interest in additional tonnage persists, although yards are becoming more selective and pricing has corrected. Limited vessel availability should provide some support, while the local steel market remains stable. With the most pressing buying needs now largely covered, the market appears to be entering a period of consolidation. On the economic front, inflation rose to 11.1% in August from 9.2% in July, adding pressure to the domestic outlook. The Turkish market remains unchanged, with yards maintaining healthy workloads and buyers adopting a prudent stance, focusing exclusively on high-quality tonnage”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide
