Available ships for scrapping have become a rarity, over the past few weeks, with demolition activity being negatively impacted. In its latest weekly report, Best Oasis (www.best-oasis.com), a leading cash buyer of ships, said that in India, “the market remains highly cautious, as the sharp decline in the dollar over the past two weeks has distorted price expectations, leaving buyers unable to match offered levels with prevailing local steel prices. Ship availability is extremely limited, with most of the few units available, heading toward Bangladesh, resulting in Indian yards staying largely idle. Current activity is driven primarily by dark-fleet tonnage; however, only a small number of yards are engaging in such purchases, keeping overall buying interest subdued. Although seasonal winter demand is supporting domestic steel consumption, persistent pressure on steel prices continues to limit any meaningful upside for the local market”.

Source: Best Oasis

Similarly, in Bangladesh, “local market conditions have deteriorated further over the past week, with price levels continuing to slide and approaching those seen in India. Steel demand has fallen to multi-year lows, driven by a slowdown in construction activity and an absence of new government-led infrastructure initiatives. Market sentiment remains clouded by uncertainty, discouraging buyers from taking firm positions despite the softer pricing environment. Expectations are growing that once the current pockets of buying activity conclude, prices may fall further and eventually align more closely with Indian market levels. In Pakistan, market sentiment has shown slight improvement, supported by recent activity on smaller units at modest price levels, indicating buyers’ willingness to re-engage under more realistic market conditions. Expectations persist that additional tonnage will surface at similar levels, which could help maintain the market’s cautiously positive outlook. Finally, in Turkiye, market conditions have shown slight improvement, with both import and local dynamics strengthening, encouraging buyers to improve their offering levels. With this gradual change, buyers are expecting activity to increase if the current trend continues”, Best Oasis concluded.

In a separate report this week, shipbroker Intermodal added that “ship recycling markets remained muted overall, amid divergent domestic steel trends and ongoing compliance progress. Activity in Chattogram shipyards is mainly concentrated in larger ldt units of the LNG and dry bulk segments, with buyers showing active interest. HKC progress is ongoing, with a total of 22 yards currently certified. The steel sector is facing hurdles, impacted by weak public sector demand due to a lack of new infrastructure projects Meanwhile, the Bangladesh Ship Recycling Board’s participation in the Bangladesh–China Friendship Exhibition Centre reflects the sector’s growing interest in pursuing scrap-steel trade prospects with China, as the latter intensifies its shift toward scrap-based steel production to meet its decarbonization targets. The Indian ship recycling market experienced a lackluster week, as the ongoing weakening of the rupee weighs on sentiment and undermines recyclers’ purchasing power.

Source: Intermodal

Whatever limited activity emerged was confined to non-compliant tonnage, pressuring offered prices. Current low bids are preventing Indian recyclers from capitalizing on the sector’s HKC compliance advantage in Subcontinent. At the same time, the steel sector is showing signs of improvement, supported by firmer conditions in steel products. It remains uncertain whether this positive momentum will hold or reflect a short-lived spike. Although the Pakistani ship-recycling market remains sluggish, sentiment has been supported by some activity in the small ldt segment, with expectations of tonnage entering the market soon. Following the first Pakistani yard achieving HKC compliance, additional yards are expected to receive accreditation in 1q 2026, further enhancing the sector’s prospects. Meanwhile, the domestic steel market softened, adding pressure on overall market dynamics. In Turkey, sentiment edged higher, supported by improving conditions in both the ship-recycling and steel sectors, prompting buyers to demonstrate greater interest in potential transactions. However, the persistent weakness of the lira remains a longstanding challenge, impacting market’s competitiveness”, the shipbroker concluded.
Nikos Roussanoglou, Hellenic Shipping News Worldwide