Ship Recycling: Alang has shown modest improvement: STAR ASIA

Ship Recycling: Alang has shown modest improvement: STAR ASIA

Alang, India

Alang has shown modest improvement this week with renewed interest in tonnage, though buyers remain cautious as they evaluate the impact of India’s recent safeguard duty announcement on imported scrap. This duty announcement has already stimulated the broader scrap market, with prices increasing by US$5-7 per ton and HMS (80:20) offers have settled around US$355-360 per ton cfr.

Industry experts suggest this could be an opportune moment for Indian buyers to secure imported scrap, particularly from the UK and Europe, given the 45-60 day transit period which would align deliveries with the implementation of the safeguard duty and peak domestic steel demand season. However, caution remains as India’s internal infrastructure demand will ultimately determine steel production levels, with potential risks for buyers who secure large volumes of imported scrap if domestic consumption falls short of expectations.

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 (Week 12)

Ships Sold for Recycling

Chattogram, Bangladesh

Bangladesh markets remain bleak despite a pronounced demand for medium-sized vessels. While buyer interest exists, operational barriers including stricter banking policies on LCs and extended processing timeframes are impeding transaction completions.

Market conditions remain stagnant compared to last week, with expectations that activity will continue to be subdued during the upcoming Eid celebrations.

Against this backdrop, Bangladesh’s parliament has passed the national budget of Tk 7,97,000 crore for the fiscal year 2024-25, targeting a GDP growth rate of 6.75% and aiming to maintain annual inflation around six percent.

Finance Minister Abul Hassan Mahmood Ali’s Appropriations Bill seeking Tk 12,41,752 crore in budgetary allocation was approved by voice votes, following the passing of the Finance Bill 2024 with minor modifications on Saturday, potentially creating a new economic context for the ship recycling industry once market activity resumes after the holiday period.

Anchorage & Beaching Position (MARCH 2025)

Gadani, Pakistan

Gadani mirrors a similar lack of activity as the other 2 sub-continent regions and with the end of Ramadan next week, the stagnancy will continue to prolong. Although markets have started to turn around recently over the last few weeks’ inactivity, there are still considerable challenges of financial barriers that will hinder further activity.

Next month will be telling on how the directions of the markets will lead.

Aliaga, Turkey

The Turkish recycling sector remains unchanged from last week.

Some sales were recorded this week but overall buyers remain cautious.

Sub-Continent and Turkey Ferrous Scrap Markets Insights

Sub-Continent Scrap Import Markets Stay Quiet Amid Ramadan, Fiscal Year-End Pressures; Turkey Holds Steady Despite Volatility.

Imported scrap markets across the Sub-Continent remained largely subdued this week, weighed down by the ongoing Ramadan slowdown, fiscal year-end adjustments, and continued buyer caution.

In India, activity was limited as buyers resisted high offers despite a slight improvement in sentiment following the announcement of a safeguard duty. Market participants cited sufficient inventory levels—both on hand and incoming—as key reasons for the restraint. Shredded scrap deals were few, with concluded transactions reported at US$385/ton CFR. Offers for PNS and busheling scrap faced resistance, with bid-offer gaps persisting at US$10-15/ton. HMS 80:20 imports remained largely unviable, with offers from the UK and Europe at US$355-360/ton CFR, against buyer expectations of US$345-350/ton CFR. While rising global offers—particularly from Europe—hinted at an upward shift, Indian buyers remained price-sensitive, especially in light of U.S. tariffs and global supply tightness. Domestic scrap continued to hold favour due to cost advantages.

Pakistan saw similarly muted activity as industrial operations slowed during Ramadan. Mills operated at reduced capacity amid weak steel demand and ongoing liquidity constraints. Shredded scrap from the UK and EU was offered at US$385-390/ton CFR Qasim, though most buyers capped bids at $385-388/t. UAE-origin shredded was quoted higher at US$390-395/ton CFR, but buyer interest was minimal. Market participants noted that currency volatility, rising freight costs, and falling domestic rebar prices were further dampening mill margins. While a recovery is expected after Eid, the market remains under pressure for now.

In Bangladesh, the market remained quiet, with interest in UK and European-origin material particularly low. Due to shorter lead times and more favourable pricing, buyers preferred sourcing from closer markets such as Australia, Hong Kong, and Singapore.

Australian shredded was heard at US$380-385/ton CFR Chattogram, while HMS 90:10 was offered around US$365-367/ton CFR. Like its neighbours, Bangladesh anticipates a pickup in demand after Ramadan, with improved activity projected for April and May.

Turkey’s imported scrap market maintained stability despite headwinds from currency volatility and political unrest. A US-origin bulk cargo was reported to have a cost of $381/t CFR for HMS 80:20 and US$401/ton CFR for shredded/bonus grades. These prices are considered repeatable in the near term.

US-origin HMS 80:20 was generally assessed in the US$380-385/ton CFR range, although Turkish buyers continued to bid lower, around US$375/ton CFR—levels which most sellers resisted. European exporters targeted similar ranges, with offers at US$380-385/ton CFR, and US-origin material heard at US$385-390/ton CFR.