Ship Recycling Prices Hold Firm Across Subcontinent

Best Oasis said Pakistan continues to attract several buyers actively looking for tonnage, although offers remain wide and price discovery is difficult. Pricing was broadly unchanged from last week, with imported Chinese hot-rolled coil still competing with local steel and capping upside for breakers. Sales activity has slowed, but limited availability of suitable ships has kept the market from weakening.

Turkey, meanwhile, has shown some improvement, with local recycling prices edging higher as inflation eases and domestic conditions improve. Turkish yards are operating close to full capacity, which is helping support the market even as a larger number of recycling candidates could pressure buying levels if supply keeps rising.

Intermodal said India remains the strongest market in the region, with Alang supported by robust domestic demand and positive sentiment, even as local steel prices softened slightly. Bangladesh stayed subdued, with muted demand and a sluggish steel market weighing on sentiment, while Pakistan and Gadani were described as weaker overall.

The clearest structural support remains the lack of scrap candidates. Intermodal said more specialized tonnage is attracting interest because the conventional fleet is still benefiting from the strong freight market, limiting the flow of ships into recycling yards. That imbalance matters for investors in shipowners and demolition specialists alike: shipowners can delay scrapping and keep earning freight income, while recyclers face tighter supply even when buyer appetite is healthy.

Policy is also shaping the outlook. Traders are watching the European Union’s decision on whether to add two Indian recycling yards to its approved list, a move that could improve business for compliant facilities in India and reinforce the market’s tilt toward yards able to meet environmental standards. Gujarat Maritime Board is still working toward full Hong Kong Convention compliance, underscoring how regulation is becoming a competitive advantage in the sector.

The near-term outlook is for a firmer but orderly market rather than a sharp move higher. Healthy but uneven steel demand, limited tonnage availability and capacity constraints in Turkey should keep support in place, while Chinese coil competition and softer sentiment in parts of South Asia may restrain price gains.