Ship demolition activity remains subdued as market conditions persist under pressure. Best Oasis, a prominent cash buyer, reported that the ship recycling market has seen limited activity and a decline in pricing across various locations. In India, the situation is declining due to low demand, tightening working capital, and buyer hesitance amid ongoing volatility. Bangladesh is experiencing a similarly quiet market, with no significant sales reported, as participants await clarity on the issuance of No Objection Certificates (NOCs).
Although demand for mid-sized vessels continues, financial and geopolitical factors remain critical concerns. In Pakistan, the conditions show little change, with recent cuts in domestic prices adding further strain to the recycling sector and worsening liquidity issues. Türkiye also continues on a downward trend, with both import and local scrap prices dropping. Broader economic stresses and monetary tightening are intensifying market caution.
Ahead of the Hong Kong Convention’s enforcement in June 2025, BIMCO’s Ship Recycling Alliance and industry stakeholders have presented a paper to the Basel Convention’s COP. This document requests the elimination of overlapping regulations between the Basel and Hong Kong Conventions, which could hinder cross-border movements of decommissioned ships. The coalition advocates for a unified global framework supporting safe, transparent, and environmentally responsible ship recycling. Shipbroker Intermodal highlighted that major recycling markets are currently facing subdued activity as geopolitical tensions rise, particularly related to trade relations with China and conflict between India and Pakistan.
India’s recently imposed 12% duty on steel imports, while aimed at protecting the domestic steel market, has not yet reflected positively in prices. Despite a temporary uptick in available recycling candidates, buyer activity is cautious due to fears of escalating conflict. The operational challenges facing many yards and compliance pressure under the Hong Kong Convention could delay market recovery. Overall, the ship recycling sector experiences significant challenges, particularly in Pakistan and Türkiye, where declining local steel prices and currency issues compound existing uncertainties.
With an eye on policy developments and potential extensions for compliance upgrades, there remains a cautious optimism in some markets as they navigate these turbulent conditions.