Global Ship Recycling Markets Hold Steady Amid Currency Volatility and Sluggish Steel Demand: STAR ASIA Weekly Report
The global ship recycling industry continued to navigate a complex and unsettled landscape this week, as outlined in the latest weekly report from STAR ASIA, one of the world’s leading cash buyers. While market sentiment remained broadly stable across major destinations, underlying volatility in currencies, weak steel fundamentals, and selective buying behaviors across South Asia dampened momentum in vessel procurement.
Despite these headwinds, Bangladesh continued to command the highest price levels for most ship types, even as its domestic challenges deepened. India and Pakistan, meanwhile, maintained a cautious stance, with inflows dominated by dark-fleet tonnage. Turkey remained steady but subdued amid stagnant demand.
Current Price Snapshot: Stability Amid Regional Divergences
According to STAR ASIA, price levels across all four major recycling destinations—Alang (India), Chattogram (Bangladesh), Gadani (Pakistan), and Aliaga (Turkey)—remained unchanged this week. The indicative price ranges per light displacement ton (LDT) are as follows:
Price Range (USD/LDT — Long Ton Basis)
| Destination | Tankers | Bulkers | MPP/General Cargo | Containers | Sentiment |
|---|---|---|---|---|---|
| Alang (India) | 400–410 | 380–390 | 370–380 | 410–420 | Stable |
| Chattogram (Bangladesh) | 420–430 | 400–410 | 390–400 | 440–450 | Stable |
| Gadani (Pakistan) | 410–420 | 400–410 | 390–400 | 420–430 | Stable |
| Turkey (non-EU) | 280–290 | 260–270 | 250–270 | 280–290 | Stable |
Prices for EU-flagged vessels in Turkey are typically USD 20–30/LDT lower due to stricter recycling compliance requirements.
Premium yards globally continue to offer higher rates for units with good quality spares, non-ferrous metals, stronger maintenance history, and cleaner trading records.
Historical Price Context: 5-Year Trends Show a Downward Correction
The five-year comparison of Week 48 pricing underscores a clear downward correction since the post-pandemic highs of 2021:
| Destination | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|
| Alang, India | 355 | 615 | 560 | 520 | 460 |
| Chattogram, Bangladesh | 365 | 625 | 560 | 500 | 450 |
| Gadani, Pakistan | 385 | 610 | 570 | 510 | 460 |
| Aliaga, Turkey | 210 | 310 | 290 | 300 | 350 |
After an extraordinary surge during 2021–22, prices have eased across South Asia in line with global steel market normalization, energy cost increases, and tighter financing.
Confirmed Sales: Limited Activity but Bangladesh Leads
Two vessels were reported sold for recycling this week:
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ZI YU LAN (7,542 LDT, 1995-built, Germany), a RoRo vessel delivered to Chattogram. Price undisclosed.
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BOLD MARINER (7,507 LDT, 1996-built, Japan), sold at USD 430/LDT, delivered to Chattogram.
The Bangladeshi market continues to attract the limited tonnage available despite local headwinds, underscoring the yards’ continued ability to outbid regional competitors.
Regional Market Analysis
Alang, India: Currency Volatility Chokes Buying Interest
The Indian ship recycling market remained subdued as the rupee’s unpredictable movements against the US dollar dampened buyer confidence. STAR ASIA noted that this volatility has made negotiations for new units—especially larger tonnage—extremely difficult, with most buyers unwilling to submit firm offers.
Although local steel prices recorded marginal gains, this was insufficient to boost sentiment meaningfully. Consumer demand for finished steel products remains weak, and scrap inflows are constrained by steady operations at compliant yards.
November nonetheless saw significant tonnage arrivals—around 136,378 LDT, mostly dark-fleet vessels—keeping top-tier green yards fully occupied. Banks’ restrictions on financing non-compliant units continue to keep compliant recyclers insulated from the price-driven competition facing their counterparts in Bangladesh.
November 2025 Arrivals in Alang
Several significant ships—including tankers such as SUNFLOWER (41,554 LDT) and ZENITH (17,013 LDT)—were beached after arrival. Others, like CONICO ATLAS, remain arrested pending legal clearance.
Chattogram, Bangladesh: Market Weakens but Still Sets Global Pricing Pace
Bangladesh experienced another week of weakening fundamentals. A widening price gap between melting scrap and finished steel plates has undercut yard competitiveness, reducing buyers’ appetite for new tonnage.
The Bangladeshi Taka continued to struggle, depreciating by over 20 basis points to close at BDT 122.53 per USD. This pressure on financial stability has added to the caution among local buyers.
Still, Bangladesh remains the global leader in ship recycling price levels, despite an acute shortage of marketable tonnage. STAR ASIA reports that the country continues to set benchmark prices even in a softening environment.
The Ship Recycling Association has urged the government to extend DASR certifications to non-compliant yards, allowing them to operate while working toward Hong Kong Convention (HKC) compliance—a move that could reshape supply dynamics if approved.
Active Vessels at Anchorage: Chattogram
Notable recent arrivals include:
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FU OCEAN (21,338 LDT), a bulker beached on 20 November.
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GULY and RAISSA, both medium tankers beached mid-month.
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A cluster of LPG carriers (PATCHARAWDEE 10/12/14) awaiting beaching instructions.
Gadani, Pakistan: Stable but Quiet; First HKC Yard Launched
Pakistan’s market preserved a stable tone but saw minimal transactional activity as recyclers refrained from issuing fresh offers. Operators are closely tracking Indian pricing before adjusting their own benchmarks.
The highlight of the week was the formal inauguration of Pakistan’s first HKC-compliant recycling yard—Prime Green Ship Recyclers—a major milestone for the country, which has long lagged behind India and Bangladesh in compliance upgrades.
Only one vessel, EENA 1, was recorded beached for the month.
Aliaga, Turkey: Market Flat with No Noteworthy Changes
The Turkish recycling market remained unchanged for the week, with local steel demand and import price parity keeping market activity subdued. No major new arrivals or concluded purchases were reported.
Turkey remains the preferred destination for EU-flagged green vessels due to regulatory requirements, even though price levels remain significantly lower than South Asia.
Outlook: Buyers Cautious, Supply Constrained, and Markets Stable but Fragile
STAR ASIA maintains a “stable” sentiment across all major recycling destinations for the coming week. However, underlying risks persist:
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Currency volatility in India and Bangladesh may continue to deter aggressive buying.
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Steel fundamentals remain weak across South Asia.
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Compliance pressures may limit the pool of available vessels, particularly dark-fleet units.
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Limited tonnage supply in the global market remains a structural constraint.
With many yards operating at or near capacity—especially in India and Bangladesh—the market is likely to stay balanced but sensitive to any external shock. For now, the global ship recycling ecosystem appears to be holding steady, with regional variations reflecting differing economic realities, financial constraints, and regulatory pressures.
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