Post-Monsoon Steel Demand Lifts Alang’s Green Ship Recycling Market: STAR ASIA

Post-Monsoon Steel Demand Lifts Alang’s Green Ship Recycling Market: STAR ASIA

Alang (India):

With the conclusion of the monsoon season, some optimisms were seen breathing new life into local steel demand. A strengthening appetite for mid-sized vessels is boosting the market’s recovery.

Although the overall supply of tonnage remains limited, a sentiment prevails among buyers that is upwardly biased. Alang continues to solidify its position as the destination for shipowners committed to green recycling standards.

While recycler sentiment showed signs of improvement, domestic ship scrap prices remained flat, held in check by stable imported ferrous scrap rates.

Anchorage & Beaching Position (AUGUST 2025)

Chattogram (Bangladesh):

Bangladesh continues to face challenges, with market activity nearly at a standstill due to a severe downturn in the domestic steel industry. A collapse in local rebar prices to a three-year low, driven by stalled public infrastructure projects and widespread liquidity issues, has reduced demand for recycled steel.

This has left Chattogram’s recycling yards unable to offer competitive pricing for new tonnage, effectively sidelining them from the bidding tables. To add, heavy monsoon rains have further dampened operational momentum. As a result, Bangladesh remains the least competitive destination in the subcontinent, hopefully a potential, albeit distant, recovery to be found once the weather improves and domestic economic conditions stabilise.

Anchorage & Beaching Position (AUGUST 2025)

Gadani (Pakistan):

Pakistan saw a positive week, with prices remaining stable. This week, the ministry’s latest clarification on Hong Kong Convention (HKC) certification has emerged as a significant talking point among industry participants. Many had previously operated under the assumption that yards could handle multiple vessels simultaneously while progressing toward HKC accreditation. The new directive, however, sets a stricter framework: only one vessel may be recycled during the certification process, and once that vessel’s dismantling is completed, there will be no grace or cessation period to allow for the certification to be finalised.

This sharper restriction is already prompting a strategic rethink across the recycling sector. Ship recyclers are now weighing whether to hold off on fresh purchases or proceed more selectively, and the financial implications of tying up capacity for a single vessel.

While immediate transactional volumes have not yet shifted, market sources suggest the policy’s effects could become more pronounced in the coming weeks, particularly after the monsoon season, when activity traditionally picks up.

The move may also influence pricing dynamics, as yards balance the desire for HKC status with the need to maintain throughput and profitability.

Anchorage & Beaching Position (AUGUST 2025)

Aliaga, Turkey

The Turkish ship recycling market saw another week of static conditions.

Key market indicators, including local pricing and overall sentiment, have remained unchanged from the previous period, resulting in minimal activity.

Sub-Continent and Turkey ferrous scrap markets insights

This week the Sub-Continent and Turkey ferrous scrap markets were largely stable over the week, with sentiment subdued by cautious buying and thin trading activity. While Pakistan and Bangladesh saw a handful of firm-price deals, Indian buyers remained inactive, relying instead on domestic scrap supplies as imported offers stayed above workable levels.

In India, imported scrap trading was minimal, with mills avoiding seaborne cargoes due to high offer levels. Most continued sourcing through regular domestic channels. Recent indications included shredded scrap at $365/t delivered to Mandi, HMS 1 from Bahrain at US$345/tON CFR, and shredded from UK/Europe/US at US$375/ton CFR, though buyer interest was capped at $360/t.

Pakistan, the market stayed steady with limited trades. UK-origin shredded was last heard at US$380–385/ton CFR, while UAE cargoes included sheared HMS at US$375/ton CFR and fabrication scrap at US$395/ton CFR. Buyers remained cautious amid currency volatility, weak domestic steel demand, and unclear price direction.

Bangladesh, the domestic billet and rebar prices were rangebound—billet at BDT 66,500– 67,000/t (US$547–551/ton) and rebar at BDT 76,000–77,000/tons (US$625–633/ton).

Imported HMS 80:20 was heard at US$348/ton CFR, 90:10 at $350/ton, and PNS at US$352/ton, with importers wary due to volatile freight and demand. Local scrap hovered around BDT 48,000/t (US$395/ton), adjusted to mill needs.

In Turkey, deepsea ferrous scrap import prices were unchanged, with HMS 80:20 at US$345–350/ton CFR US/Baltic and US$339–342/ton CFR EU. Mills stayed largely inactive on weak rebar and flat steel demand, with September bookings possible only if billet and finished steel prices recover.

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