Although the exchange rate has shown some improvement, it has not yet translated into firmer vessel prices, which continue to stagnate. A few recyclers who had purchased vessels at lower acquisition levels are now able to offer materials at reduced selling prices, putting additional strain on others operating at normal cost levels. In Bangladesh, “the market has softened further, and this downward trend may become more evident in the pricing of the coming week. Local scrap prices remain at low levels, with very little movement seen across categories. Despite the weak sentiment, buyer interest persists, primarily due to the limited availability of tonnage in the market. Buyers continue to show stronger inclination toward tankers and bulkers, which remain their preferred options under current conditions”.

Similarly, Best Oasis noted that in Pakistan, “the market remains largely stagnant with a slightly negative tone as vessel prices continue to decline. The full impact of this downward trend may become more visible in the coming weeks. Demand is quite limited, with only two or three active buyers currently capable of making purchases. Market participants are also closely watching the foreign exchange situation, which is expected to influence overall stability and buying interest in the days ahead. The Turkish market has shown slight improvement this week, with local scrap prices rising by around USD 3. Import levels remain stable, and vessel prices have also recorded a modest increase. This marks a gradual strengthening in overall market sentiment after a relatively quiet period”, the company said.

In a separate report this week, shipbroker Intermodal said that “the ship recycling market witnessed a lacklustre week, with activity constrained by regional festivities, soft steel market conditions, and ongoing concerns over the arrival of OFAC-listed candidates and low-cost steel imports weighing on sentiment. Alang’s ship recycling market was quiet last week, affected by Diwali holidays and overall limited activity. Discounted “shadow fleet” vessels continue to depress prices, distort competition, and raise concerns over a two-tier market. The steel markets were similarly sluggish, reflecting the festive slowdown and weak demand. Trade discussions with the United States are ongoing, with US tariffs continuing to weigh on economic growth. In Chattogram, the ship recycling segment remains subdued, with a limited number of candidate units and deals prompting recyclers to raise their bids despite weak steel market conditions. Shipowners appear reluctant to accept current price levels, anticipating further firming. 

On the compliance front, the sector continues its steady progress toward HKC standards, with 20 facilities now fully upgraded. Broader economic sentiment remains pressured by inflation, tariffs, and the interim regime’s lack of infrastructure development, with February’s elections widely viewed as a potential turning point for the country’s economic outlook. Pakistan’s ship recycling market is at a standstill, with recyclers showing limited appetite for new purchases

The sector is facing growing pressure from increased imports of low-priced steel and hot-rolled coils from Iran and China, which have weighed on domestic steel prices. This influx of cheap material has eroded market confidence, prompting recyclers to adopt a cautious stance and refrain from new offers amid concerns over declining inventory values and shrinking margins. Turkey’s ship recycling market showed mild improvement, lending some optimism to otherwise steady conditions. The adequate availability of candidate tonnage improves market sentiment, limiting the need for aggressive bidding. Meanwhile, the Turkish Lira continued to weaken for another week”, the shipbroker concluded.