Ship Recycling: Indian Market Mirrored last week’s underwhelming performance: BEST OASIS
This week, the ship recycling industry across major destinations continued to reflect a subdued tone, with markets largely stagnant and waiting for signs of revival. In India, the market mirrored last week’s underwhelming performance, with optimism hinging on potential post-budget activity, though this remains speculative.
Bangladesh showed a glimmer of movement with a slight rise in the steel scrap market for melting steel, driven by a shortage of imports, but broader optimism is yet to take hold. Pakistan remained firmly in its quiet and stagnant phase, with any real activity unlikely unless prices fall below the 400 level.
Türkiye also stayed dormant, reflecting an extended period of inactivity, with the industry still awaiting a much-needed spark of optimism and momentum. Despite the current lull, the broader outlook for 2025 brings a sense of cautious optimism. With shifting economic policies, infrastructure demands, and potential global recovery, the year ahead could be the one to reignite the ship recycling industry, turning prolonged patience into a long-awaited opportunity.
Global economic growth is projected to remain at 2.8% in 2025, unchanged from 2024, as outlined by a UN report. Slower growth in major economies like the United States and China is expected to weigh on global performance, though this will be partly balanced by stronger growth in India and modest recoveries in regions like the EU and Japan. China’s economy is forecast to slow slightly from 4.9% in 2024 to 4.8% in 2025, while the US is expected to decline more sharply, from 2.8% to 1.9%, due to labor market weaknesses and fiscal constraints. India, on the other hand, is expected to maintain robust growth, supporting the broader global outlook. Trade is projected to grow by 3.2% in 2025, though uncertainties around geopolitical tensions and technology disputes persist. Inflation is anticipated to ease further, falling to 3.4% in 2025 from 4.0% in 2024, offering modest relief to global markets
India
The market continues to reflect underwhelming trends with hopes pinned on budget announcements.
The market in India continues to reflect similar trends as observed in the previous week, which was also underwhelming. As noted earlier, we might anticipate some activity or momentum following the budget announcement; however, this expectation is speculative at best.
India’s economy is expected to grow by 6.6% in 2025 and 6.7% in 2026, supported by strong spending by individuals and businesses, according to the UN’s World Economic Situation and Prospects 2025. The report highlights the important role of the government in improving infrastructure and social services, with investments likely to remain strong.
Steel prices in 2025 could rise sharply, especially in the first half, if the government enforces a 25% safeguard duty on imports to curb cheap steel from China and others. A CRISIL (Credit Rating Information Services of India Limited) report suggests domestic prices, currently low due to global trends, may increase by 4-6% with the duty.
Beaching Dates
11 January to 18 January
28 January to 31 January
01 February to 04 February
Bangladesh
Price for Recycling Ships in Bangladesh The market sees a moderate rise in steel scrap prices amid import shortages.
The steel scrap market, particularly for melting steel, is witnessing a slight rise, primarily due to a shortage of imported materials. Apart from this, the market remains largely similar to the previous week.
The interim government extended the deadlines for six reform commissions tasked with proposals on the constitution, police, judiciary, elections, public administration, and anti-corruption. Five commissions now have until January 15, while the Judiciary Reform Commission’s deadline is extended to January 31, according to a Cabinet Division notice.
Beaching Dates
15 January to 18 January
30 January to 02 February
14 February to 17 February
Pakistan
Price for Recycling Ships in Pakistan The market remains quiet and stagnant, showing no signs of change or activity.
The market has been quiet for a long time, and this week is no different, showing the same slow sentiment as before. It’s in a weak and stagnant phase, with no clear sign of improvement. It seems likely that any real activity will only happen if prices drop below the 400 level.
Pakistan’s billion USD repayment, due this month, has been deferred following an agreement between its prime minister and the president of the UAE during his visit.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye The market remains in a prolonged standstill, showing no signs of movement or recovery.
The market remains quiet and unchanged, showing a prolonged period of inactivity with no clear signs of improvement or movement ahead.
Turkiye has raised import duties on certain steel products as of December 31, with key changes affecting alloyed grades. Duties on some alloyed hot-dip galvanised (HDG) sheets, including those 600 mm wide, increased from 15% to 20%. Additionally, certain alloyed and stainless hot-rolled (HRC) and cold-rolled (CRC) products now face slightly higher tariffs, while a few previously duty-free alloyed and stainless steel items are now taxed. Non-alloyed duties remain unchanged.
Beaching Dates Throughout the month
