Caution Replaces Aggression as India’s Ship Recycling Market Pauses with Steel Demand

Caution Replaces Aggression as India’s Ship Recycling Market Pauses with Steel Demand

Alang, India

In the Indian ship recycling market, the prevailing mood among buyers has shifted from aggressive buying to a more considered and stable purchasing strategy. This shift is closely tied to the domestic steel market, currently experiencing a pause.

The combination of monsoon weather, which has disrupted construction projects across several states, and a slowdown due to the upcoming festival season has dampened the demand for finished steel products. While prices are holding steady due to firm raw materials, lack of immediate end user demand has led to caution.

Market participants remain optimistic, anticipating a seasonal resurgence once the monsoon recedes in mid-to-late September, which should in turn support a more active market.

Anchorage & Beaching Position (AUGUST 2025)

Chattogram, Bangladesh

Another week of inactivity in the Bangladesh market, weighed down by persistent internal challenges. A sluggish domestic steel market continues to offer little upward momentum, while delays in the issuance of L/Cs are actively discouraging potential buyers and hindering purchases.

This, coupled with a lack of meaningful progress in bringing more recycling yards into compliance with the HKC, led to low buying interest and uncompetitive levels compared to regional counterparts. Market is expected to remain quiet in the near future, awaiting fundamental improvements in both financial and regulatory readiness.

Anchorage & Beaching Position (AUGUST 2025)

Gadani, Pakistan

There is a notable lack of momentum in the Pakistan market, with market activity remaining quiet. This is also mirrored in the domestic steel market, where demand is moderate and fails to provide the necessary stimulus for new vessel purchases.

The subdued pricing is seen all across, from imported scrap to finished steel products. As a result, prices offered from local recyclers for new tonnage have remained unchanged, with a general absence of buyer interest and a market that is effectively paused.

Anchorage & Beaching Position (AUGUST 2025)

Aliaga, Turkey

Turkey recycling markets remains muted.

With a weak performance on the domestic steel sector, Turkish steel mills are contending with sluggish sales of finished products, which in turn compels them to aggressively push for lower prices on imported ferrous scrap. With scrap import prices stagnant and unlikely to rise in the near term, there is little to no margin for Turkish recyclers to offer competitive prices.

Sub-Continent and Turkey ferrous scrap markets insights

India

The Indian imported scrap market continues to be weighed down by declining domestic finished steel prices, which has dampened sentiment and pushed most buyers to the sidelines. Steel mills are actively resisting higher scrap offers, with their bids consistently trailing sellers’ asking prices. This standoff is evident across various grades, with bids for high-grade HMS scrap hovering around US$340/t against offers of up to US$346/t, and similar price disagreements observed for shredded and bulk cargoes.

Bangladesh

In Bangladesh, the imported scrap trade was slow as significant disparities between buyer and seller price expectations prevented deals from being finalized. For Australian shredded scrap, for example, offers at US$380/t CFR were met with buying interest closer to US$370/t. A similar gap was noted for PNS grade material, effectively limiting trade and maintaining a slow market pace.

Pakistan

Pakistan’s market remained exceptionally quiet, with trading activity at a minimum. While offers for material such as shredded scrap from the UK were heard in a range of US$378- 384/t, the lack of consistent bids or concluded deals indicates a market that is largely stagnant and awaiting a clear directional shift.

TURKEY

The Turkish deep-sea import market saw prices soften, with premium HMS scrap assessed at US$345/t CFR. Market sentiment remains weak as steel mills show very little buying interest. The situation for sellers is being compounded by a sharp increase in freight costs of US$10-15/t, which erodes their margins. Adding to the pressure, some US suppliers are now focusing on their more lucrative domestic market, reducing the availability of scrap for export and further dampening sentiment among Turkish importers.

Author: shipping inbox

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