Ship Recycling: Indian ship recycling market remains subdued: STAR ASIA

Ship Recycling: Indian ship recycling market remains subdued: STAR ASIA

Alang, India

The Indian ship recycling market remains subdued this week, with industry participants maintaining a cautious outlook on future movements. April has seen only around 47,000 mt of lightweight recycled, placing additional pressure on mills to meet tonnage demands before the upcoming monsoon season arrives in June.

Meanwhile, India has taken a significant step forward in green steel certification by introducing a formal system for electric furnace-produced steel, marking a policy shift toward low-emission production. Managed by the National Institute of Secondary Steel Technology (NISST), this voluntary scheme evaluates emissions per ton of finished steel rather than crude steel, particularly benefiting rebar producers using electric arc and induction furnaces. Though participation is currently limited, the certification offers long- term advantages for producers seeking benchmark emissions and align with emerging green procurement standards, potentially influencing global practices in the steel industry.

Anchorage & Beaching Position (MAY 2025)

Chattogram, Bangladesh

Uncertainty Persists in Chattogram as Recyclers Await Government Clearance. The Bangladeshi ship recycling market remained subdued this week, with recyclers anxiously awaiting the official gazette that would confirm an extension allowing yards to continue upgrades while enabling authorities to issue the long-anticipated No Objection Certificates (NOCs). These NOCs are critical for permitting the recycling of non-HKC-compliant vessels during the transition period.

The lack of clarity has created a fragile environment, with multiple vessels now anchored at outer anchorage in limbo. Several shipowners, frustrated by the delay, have already rerouted their units to Alang. Unless the government expedites the issuance of NOCs, further diversions may follow.

Several cash buyers are urging shipowners to exercise caution and avoid Chattogram until a formal directive is released.

Anchorage & Beaching Position (May 2025)

Gadani, Pakistan

The Pakistani ship recycling market remains on the sidelines, with minimal domestic activity and a persistently stagnant steel sector. Local steel prices have shown no upward movement, reinforced a bearish outlook and dampened overall sentiments.

The shortage of available tonnage, combined with the uncompetitive position of Pakistani recyclers, has further diminished the likelihood of achieving HKC compliance ahead of the June 2025 deadline.

Although multiple yards in Pakistan have formally registered for HKC compliance, tangible progress on yard upgrades remains limited.

Anchorage & Beaching Position (MAY 2025)

Aliaga, Turkey

The Turkish steel market continues to navigate pressures as most domestic producers have lowered scrap buying prices despite the ongoing depreciation of the lira against the dollar. The broader market dynamics reveal stagnant domestic demand despite some recovery in export sales. Turkish mills are raising rebar prices in response to higher scrap values, but weak demand continues to limit transactions.

Activity in the recycling segment remain muted with not much activity to report. Turkish shipbreaking scrap levels closed the week at around US$315-330/t delivered down some US$40 from last week. The lira was pegged at TRY 38.52/dollar.

Sub-Continent and Turkey ferrous scrap markets insights

The imported ferrous scrap markets across the Indian Subcontinent and Turkey have entered a period of cautious stagnation, as mills and traders brace for potential price shifts amid sluggish steel demand and rising inventory levels. Sentiment remains tentative, with participants across all major regions adopting a wait-and-watch approach, hoping for clearer direction in the coming weeks.

India’s scrap market remained largely subdued this week. Buyers, anticipating further price corrections, showed limited interest in fresh bookings. UK-origin shredded scrap was offered at around US$370/ton CFR Nhava Sheva, but bids hovered lower at US$365/ton. UK HMS 80:20 was heard in the range of US$345–350/ton CFR, while South African HMS offers stood at approximately US$350/ton. Overall, sentiment stayed cautious, with most buyers sidelined as they awaited improved market visibility.

Imported scrap demand in Pakistan showed little improvement, with mills continuing to run at reduced capacity. Weak domestic steel prices and ongoing regional uncertainty have further eroded confidence. Offers for UK and EU-origin shredded were in the range of US$370–375/ton CFR Port Qasim, though buyers remained firm at US$364–366/ton, resulting in a persistent pricing standoff. Meanwhile, UAE-origin material remained uncompetitive, with offers at US$385–390/ton CFR. The bearish outlook was compounded by falling billet and rebar prices in the domestic market.

The Bangladeshi scrap market remained in limbo, with limited trading activity. Despite improved vessel arrivals and easing port congestion in Chattogram, mills refrained from new purchases. Australian-origin shredded scrap was offered at US$380/ton CFR, while buyers bid closer to US$375–376/ton. High inventories, weak construction activity, and ongoing liquidity issues continued to weigh on sentiment. With no significant deals concluded, participants remained focused on regional indicators and Turkish market cues before stepping back into the market.

The Turkish scrap market remained quiet but showed tentative signs of stabilisation. Prices for premium HMS 80:20 edged up to US$330/ton CFR, though actual deal flow was thin. Seller targets ranged from US$330/ton CFR for EU-origin scrap to US$335–340/ton for US-origin material. Discussions at the recent IREPAS conference hinted that the market may have reached a floor; however, both buyers and sellers remained reluctant to act. Tight scrap supply and ongoing price uncertainty are keeping players on edge, reinforcing the prevailing stalemate.

Across the board, the market is in a holding pattern. Buyers are hesitant to commit amid falling steel prices and ample inventory, while sellers are probing for lower levels in hopes of sparking demand. Until a clearer pricing direction emerges, likely triggered by fresh deals or a significant shift in downstream steel dynamics, the current impasse is expected to persist.

Ship Recycling Market Snapshot

• All prices are USD per light displacement tonnage in the long
• The prices reported are net prices offered by the recycling
• Prices quoted are basis simple Japanese / Korean-built tonnages trading Premiums are paid on top of the above-quoted prices based on quality & quality of Spares, Non-Fe., bunkers, cargo history, and maintenance.

5-Year Ship Recycling Average Historical Prices

Ships Sold for Recycling

Author: shipping inbox