South Asian Ship Recycling Market Faces Mixed Fortunes as India Struggles to Regain Momentum and Bangladesh Holds Pricing Edge: STAR ASIA

South Asian Ship Recycling Market Faces Mixed Fortunes as India Struggles to Regain Momentum and Bangladesh Holds Pricing Edge: STAR ASIA

Alang, Chattogram, Gadani, and Aliaga Weekly Market Overview — November 2025

World’s leading Cash Buyer for Ships sending for recycling, STAR ASIA, in their weekly ship recycling market report, opined that the global recycling sector continues to face a mixed set of challenges and opportunities. While certain regions are witnessing improved buying sentiments driven by stable steel plate prices and better local demand, others remain constrained by currency volatility and limited end-buyer appetite. The report highlighted that market fundamentals are still being shaped by competitive pricing from Bangladesh and cautious approaches in India and Pakistan, as well as by fluctuating freight earnings influencing owners’ decisions to sell their ageing vessels for demolition.

The South Asian ship recycling sector remains caught in a delicate balance as domestic and international economic pressures continue to define trading sentiment across key hubs in India, Bangladesh, and Pakistan. While Bangladesh’s Chattogram yards have regained competitive strength amid aggressive pricing, India’s Alang remains sluggish, weighed down by currency weakness and subdued post-festive demand. Pakistan’s Gadani, on the other hand, continues to languish under the impact of cheaper Iranian steel imports and stagnant domestic sentiment, while Turkey’s Aliaga shows no signs of immediate market revival.

Alang: Festive Slump, Weak Rupee, and Competitive Headwinds

In India, the Alang market has yet to find firm ground after the recent festive season, as domestic demand struggles to gain momentum. A persistent weakening of the Rupee against the U.S. Dollar continues to erode buyer confidence, even as some indicators — such as a modest $8 per metric ton rise in local steel plate and scrap prices — hint at underlying resilience.

Despite these incremental improvements, Alang’s recycling activity remains restrained. Although there has been a slight uptick in buying interest from local recyclers, the market continues to face stiff competition from Bangladesh, where buyers are offering substantially higher prices for end-of-life tonnage. Consequently, many vessel owners are choosing to divert their ships to Chattogram, where the premium per light displacement ton (LDT) can range from $20 to $30 higher.

This competitive imbalance has left Alang’s prices largely static, with tankers fetching around $400–410/LDT, bulkers $380–390/LDT, and containers $410–420/LDT. The stability masks a cautious optimism among recyclers, many of whom are relying increasingly on domestically sourced scrap rather than imported material. The rationale behind this shift is to reduce exposure to foreign exchange risk — a growing concern as the Rupee continues to hover near ₹88.67 per U.S. Dollar, up slightly from ₹88.81 the previous week.

Anchorage & Beaching Positions (Alang – November 2025)

With several tankers currently beached or awaiting clearance, recyclers remain hopeful for more tonnage arrivals by mid-November. However, the broader steel market’s tepid momentum continues to weigh heavily on near-term price recovery.

Chattogram: Competitive Pricing Revives Market Enthusiasm

Bangladesh’s Chattogram yards are currently leading the regional recovery, driven by aggressive pricing strategies and a gradual improvement in buyer sentiment. While the overall supply of end-of-life vessels remains limited, local recyclers are displaying renewed enthusiasm, especially for tanker units.

Market activity has been invigorated by bids in the range of $420–430/LDT for tankers and up to $450/LDT for containers, maintaining Bangladesh’s position as the most lucrative destination for shipowners looking to offload tonnage.

Despite a mildly sluggish local steel market — with domestic scrap prices easing by $2/MT and plate prices holding steady — several recyclers are offering premiums to secure scarce ships. The optimism is underpinned by expectations of stronger yard utilization in the months ahead, even as operational challenges, including delays in payment settlements and limited access to foreign currency, persist.

Anchorage & Beaching Positions (Chattogram – November 2025)

The tanker “Raissa”, built in 1998 and weighing 9,711 LDT, was recently sold to Chattogram at $470/LDT, marking one of the region’s most competitive deals of the month.

Rebar in Chattogram continues to trade between BDT 76,000–78,000/t (US$624–640), while domestic scrap is holding around BDT 46,000–47,000/t (US$377–385), ex-works. The exchange rate also saw a minor week-on-week strengthening, with USD/BDT moving from 122.38 to 122.00.

Gadani: Waiting for a Steel Market Revival

In Pakistan, the ship recycling market remains muted as local recyclers continue to face stiff headwinds from both domestic and external fronts. Cheaper Iranian steel continues to flood the local market, undercutting domestic prices and eroding recyclers’ margins.

As a result, buyers remain reluctant to commit to new tonnage, with most yards operating below capacity. The price range for tankers in Gadani remains between $410–420/LDT, and for bulkers $400–410/LDT — levels that have remained unchanged for several weeks.

The delayed recovery in Pakistan’s steel market, coupled with liquidity constraints, has limited trade activity. Nevertheless, there is cautious optimism as several yards move closer to obtaining Hong Kong Convention (HKC) certification. The certification process, once completed, is expected to bolster Pakistan’s credibility in the international recycling market and attract more environmentally compliant shipowners in the coming year.

Anchorage & Beaching Positions (Gadani – November 2025)

Aliaga, Turkey: Market Stays Static Amid Lack of Fresh Sales

In Turkey, the ship recycling market at Aliaga remains static, mirroring the sentiment of the past several weeks. Despite stable domestic conditions, no new sales were reported this week, and the market continues to lack direction.

Prices for non-EU tonnage remain around $280–290/LDT for tankers, while for EU-flagged vessels, rates are typically $20–30 lower due to stricter compliance costs.

Interestingly, Turkey’s deep-sea imported scrap market has shown modest gains, supported by robust demand for rebar and a seasonal tightening of supply. A recent U.S.-origin HMS 80:20 cargo was reportedly sold at $356/ton CFR, signaling potential near-term firmness in Turkish scrap prices — a contrast to the subdued trends in South Asia.

Global Scrap & Exchange Trends: Currency Volatility Shapes Strategy

Across the Sub-Continent, imported scrap trading through October remained subdued due to liquidity shortages, weak steel demand, and payment delays.

In India, shredded scrap was assessed between $355–360/t CFR Chennai, with workable deals closer to $345/t, while HMS 90:10 and 80:20 grades traded between $325–335/t.
In Pakistan, UK and EU shredded scrap hovered around $355–360 CFR, while domestic scrap traded between PKR 130,000–132,000/t (US$461–468).
In Bangladesh, market demand stayed limited, with Hong Kong-origin PNS scrap at $365–368/t, and South American HMS 70:30 around $330–335/t.

Exchange rate movements have also played a significant role in shaping trade sentiment. The Rupee, Taka, and Lira have all weakened marginally over the week, while Pakistan’s PKR strengthened slightly from 280.98 to 282.74 per USD, reflecting minor local stabilization.

Exchange Rates (as of November 7, 2025)

Five-Year Historical Overview: Prices Normalize After Pandemic Peaks

Comparative data over the past five years shows how ship recycling prices have gradually stabilized from the extraordinary highs of 2021, when post-pandemic demand and tight supply pushed South Asian prices to record levels.

These figures illustrate a broader normalization of the global recycling market as steel prices, freight rates, and global demand patterns revert toward pre-pandemic baselines.

Outlook: Stable but Uneven Recovery Ahead

Overall, the ship recycling sector across the Sub-Continent and Turkey remains stable but uneven. Alang’s outlook hinges on currency stabilization and improved domestic steel demand, while Bangladesh looks poised to sustain its lead in pricing and volume in the near term. Pakistan’s future prospects rest heavily on HKC certification progress and steel market recovery, while Turkey may benefit from steady European demand for recycled metals.

In the coming weeks, recyclers across all regions are expected to maintain a cautious approach, balancing inventory management with selective purchases. While market stability is likely to persist, the key question for South Asia’s recycling industry is whether India can close the competitiveness gap with Bangladesh — or whether the regional market will continue to tilt eastward toward Chattogram.

Author: shipping inbox

shipping and maritime related web portal