Ship Recycling: Indian markets remained stable: STAR ASIA

Alang, INDIA

The ship recycling markets remained largely stable this week, with steady domestic demand supporting pricing levels despite weakness in imported ferrous scrap triggered by escalating U.S. trade tensions with major steel-producing nations. While buying sentiment stayed intact, concerns are mounting over potential near-term volatility as slowing steel exports begin to weigh on overall market confidence. Traders remain cautious, anticipating possible price adjustments if export demand continues to soften.

Ship Recycling Market Snapshot

DESTINATION	TANKERS	BULKERS	MPP/ GENERAL CARGO	CONTAINERS	SENTIMENTS / WEEKLY FUTURE TREND
ALANG (WC INDIA) .	460 ~ 470	430 ~ 440	440 ~ 450	470 ~ 480	STABLE /
CHATTOGRAM, BANGLADESH	460 ~ 470	450 ~ 460	440 ~ 450	470 ~ 480	STABLE /
GADDANI, PAKISTAN	460 ~ 470	440 ~ 450	430 ~ 440	470 ~ 480	STABLE /
TURKEY *For non-EU ships. For E.U. Ship, the prices are about USD 20-30/ton less	320 ~ 330	300 ~ 310	290 ~ 300	330 ~ 340	STABLE /

• 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

DESTINATION	2020	2021	2022	2023	2024
ALANG, INDIA	280	470	670	540	510
CHATTOGRAM, BANGLADESH	280	510	655	570	530
GADDANI, PAKISTAN	280	510	690	–	530
ALIAGA, TURKEY	180	260	460	320	310

Ships Sold for Recycling

VESSEL NAME	LDT/TON	YEAR / BUILT	TYPE	PRICE (USD/LDT LT)	COMMENTS
SEA DOVE	7,793	1987 / JAPAN	BULKER	460	DELIVERED ALANG. INCLUDING 150 MT BUNKERS IN THE PRICE
KING HUNG NO.2	947	1981 / JAPAN	TANKER	440	DELVIERED CHATTOGRAM
LORD 17	2,583	1987 / JAPAN	GENERAL CARGO	UNDISCLOSED	DELVIERED ALALNG
PASHA 9	2,396	1995 / JAPAN	GENERAL CARGO	UNDISCLOSED	DELIVERED ALANG
JARUCHA 6	975	2006 / CHINA	GENERAL CARGO	330	DELVIERED CHATTOGRAM
CHARLENE	6,068	1996 / JAPAN	BULKER	465	DELVIERED CHATTOGRAM
HEUNG A ULSAN	2,242	1996 / S.KOREA	CONTAINER	UNDISCLOSED	AS IS SINGAPORE

India’s steel exports dropped nearly 30% y-o-y in FY’25 to around 6.25 million tons (mnt), down from 8.75 mnt the previous year. The sharpest fall was seen in finished flat steel exports, which plunged 32% y-o-y. The decline stemmed largely from oversupply in the global market, with China flooding key markets such as Vietnam and the Middle East with cheaper offerings undercutting Indian HRC prices by $30–$60/t. Weak demand in traditional destinations like the UAE, Nepal, and Turkey further weighed on volumes, along with import duties and anti-dumping probes by the EU, Vietnam, and Malaysia. India utilised just 3% of its EU HRC quota in Q4. Outlook remains cautious amid tightening EU quotas and broader protectionist policies. However, a 7% dip in Chinese steel exports and India’s exclusion from some anti-dumping measures offer a glimmer of hope for a potential price recovery and improved competitiveness in FY’26.

Anchorage & Beaching Position (APRIL 2025)

VESSEL NAME	TYPE	LDT	ARRIVAL	BEACHING
GLUON	CONTIANER	3,193	19.04.2025	AWAITING
LORD 17	GENERAL CARGO	2,583	12.04.2025	AWAITING
AURO	TANKER	20,008	14.04.2025	AWAITING
PASHA 9	GENERAL CARGO	2,396	16.04.2025	AWAITING
KELSEY 2	CHEM. TANKER	3,230	17.04.2025	20.04.2025
ATHENA	AHTS	1,177	03.04.2025	16.04.2025
SOCOL 9	GENERAL CARGO	3,672	08.04.2025	12.04.2025
ADVENTURE	GENERAL CARGO	2,073	05.04.2025	10.04.2025

Chattogram, Bangladesh

The Chattogram ship recycling market saw another subdued week as recyclers await clarity from environmental authorities regarding yard upgrade extensions. Activities continue cautiously, but the issuance of No Objection Certificate for non-HKC-compliant yards remains on hold, limiting activity. Market participants report that authorities have verbally agreed to grant an extension, though the official notification is still pending. The awaited gazette, expected next week, is likely to determine the near-term pace of activity and market sentiment.

There are several ships sold in the past awaiting at outer anchorage due to the issuance of the NOC, delaying the entire process

Anchorage & Beaching Position (APRIL 2025)

VESSEL NAME	TYPE	LDT	ARRIVAL	BEACHING
PILATUS 32	LPG	974	16.04.2025	AWAITING
SEAWORLD	ROPAX	5,534	16.04.2025	AWAITING
JARUCHA 6	GENERAL CARGO	974	10.04.2025	17.04.2025
KING HUNG NO.2	TANKER	947	27.03.2025	09.04.2025
RICH ANNA	GC	1,010	27.03.2025	10.04.2025

Gadani, Pakistan

Markets return post Eid holidays with no significant sales reported, as the local markets are struggling to catch up with their counterparts despite similarities in pricing.

Meanwhile, the Pakistan Steel Melters Association has presented comprehensive recommendations for the upcoming Federal Budget 2025-26, focusing on measures to strengthen the domestic steel industry and stimulate economic growth. At the core of their proposal is reinstating the ‘Special Procedure’ that calculates sales tax based on electricity consumption, which industry experts believe would effectively combat tax evasion, particularly among smaller operations.

The association’s recommendations also include mandatory registration of scrap dealers with tax authorities, reduced electricity rates for steel producers, increased regulatory duties on steel billet imports, and enhanced port inspections to prevent smuggling and invoice fraud. Additionally, they advocate for the gradual elimination of tax exemptions in tribal areas to ensure equitable competition nationwide.

Anchorage & Beaching Position (APRIL 2025)

VESSEL NAME	TYPE	LDT	ARRIVAL	BEACHING
DMS STAR	BULKER	8,000	02.04.2025	AWAITING
SEA WAVE	BULKER	5,533	09.04.2025	AWAITING

Aliaga, Turkey

The Turkish scrap market remains at a standstill as steel mills adopt a cautious approach amid declining steel prices and slow sales, despite having unfilled procurement needs. While unconfirmed deals were rumored at US$350-356 per ton CFR Turkey for HMS 1&2 80:20, suppliers from different regions are struggling to maintain their target prices.

Meanwhile, Turkish mills have lowered their buying targets to US$335-340 to protect margins. This price standoff has created what one supplier describes as “a complete stalemate” in abnormal market conditions. The situation is further complicated by high cargo availability, weakening euro, and reduced mill utilisation rates. As rebar prices continue falling, mills are exploring imported billet alternatives while market participants debate whether scrap prices are approaching bottom or will decline further to $340-345 due to supply-demand imbalance.

 

 

 

BUNKER PRICES (USD/ton)
PORTS	VLSFO (0.5%)	HSFO (3.5%)	MGO (0.1%)
SINGAPORE	480	414	582
HONG KONG	509	450	623
FUJAIRAH	472	420	720
ROTTERDAM	434	399	599
HOUSTON	462	407	625

 

EXCHANGE RATES
CURRENCY	April 18	April 11	W-O-W % CHANGE
USD / CNY (CHINA)	7.29	7.30	+0.14%
USD / BDT (BANGLADESH)	121.80	121.49	-0.26%
USD / INR (INDIA)	85.43	86.03	+0.70%
USD / PKR (PAKISTAN)	280.59	280.58	0
USD / TRY (TURKEY)	38.09	37.87	-0.58%

 

Sub-Continent and Turkey ferrous scrap markets insights

Ferrous scrap prices across the Sub-Continent region and Turkey declined this week, pressured by sluggish steel demand, increased competition from alternative materials, and prevailing economic uncertainty. Buyers remained conservative, with exchange rate volatility, geopolitical risks amid trade war, and softening steel prices curbing procurement activity.

India

India’s import scrap market remained under pressure as limited trade volumes reflected weak sentiment. UK/European shredded scrap offers started the week at US$390/t CFR Nhava Sheva, but buyers largely resisted, targeting below US$380/ton. Sparse transactions and a broad bid-ask spread indicated caution.

Weaker domestic rebar pricing, higher reliance on sponge iron, and sufficient inventories discouraged fresh bookings. HMS cargoes from Australia and the UK were concluded between US$350–365/ton CFR. By week’s end, shredded prices dipped 2% w-o-w to around US$380/ton. The market outlook remains tentative amid rupee instability and growing concerns over billet imports from China.

Approximately 17,500–18,000 tons of imported scrap landed this week, including a 10,500 t shredded cargo priced in the US$380–385/ton range, 2,000 t of HMS 80:20 at US$380/ton, and a 3,000 t lot of bonus-grade material at US$395/ton. An additional 1,500–2,000 t of mixed grades also arrived.

Pakistan

Pakistan’s scrap market softened further amid subdued demand and cash flow constraints. Mills operated at reduced capacity, avoiding major restocking. Imported shredded fell 2% to US$381/ton CFR, with UK/Europe-origin offers in the US$380–382/ton range, though actual buying interest was lower at US$375–378/ton.

Domestic scrap availability remained limited, priced at PKR 138,000–148,000/t (US$492– 527/ton), while rebar traded between PKR 230,000–250,000/ton (US$820–890/ton), reflecting continued downstream market weakness.

Bangladesh

Scrap trade in Bangladesh stayed largely inactive amid persistent letter of credit constraints and limited forex availability. Despite a rebound in remittance flows and strong export performance in March, import activity remained muted.

 

Bulk supply from the US was absent, with market instability in Turkey reducing trade flow. Offers from Australia and Japan in the US$360–380/ton CFR band failed to draw significant interest. Domestic scrap was preferred, as stable rebar prices (BDT 82,000– 86,000/ton) supported local sourcing amid broader financial and political uncertainties.

Turkey

Turkey’s imported scrap market declined sharply under the weight of weak steel fundamentals and political noise. HMS 80:20 slipped 5% w-o-w to US$345/ton CFR, with minimal fresh bookings. Aggressive pricing from China on billet further undermined sentiment.

UK/EU-origin HMS cargoes were heard at US$335–348/ton CFR, intensifying the downtrend. US-origin offers in the US$345–355/ton range failed to gain traction as buyers anticipated continued weakness.

Late-week transactions hinted at potential stabilisation. A Baltic cargo was booked at US$348/t, and EU deals saw HMS 80:20 clear at US$330–332/ton into the Mediterranean and West Marmara. A German HMS 75:25 lot into the Aegean at US$333/ton underlined the market’s vulnerability and cautious buyer positioning.