Ship Recycling: Local Demand Steadily Recovering in India: STAR ASIA

Ship Recycling: Local Demand Steadily Recovering in India: STAR ASIA

Ship Recycling: Local Demand Steadily Recovering in India: STAR ASIA

Alang, India

The market showed no significant shift in sentiment or activity this week compared to the previous period, with local demand steadily recovering. While India’s rebar market rally has temporarily paused in the secondary segment as buyers have already restocked and adopted a wait-and-see approach ahead of safeguard duty decisions, the primary steel segment remains resilient.

This stability is primarily supported by robust demand from government infrastructure projects.

India’s ship recycling industry faces potential challenges as the country is predicted to experience a significant scrap shortage over the next five to ten years.

This looming shortage is driven by multiple factors: a tightening global scrap pool as many countries retain more material for domestic use, sluggish growth in India’s domestic recycling capacity, and increasing competition for scrap from China as it transitions toward greener steelmaking practices.

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 280 430 650 550 480
CHATTOGRAM, BANGLADESH 290 480 650 610 530
GADDANI, PAKISTAN 270 490 680 530
ALIAGA, TURKEY 160 250 480 320 310

Ships Sold for Recycling

VESSEL NAME LDT/TON YEAR / BUILT TYPE PRICE

(USD/LDT LT)

COMMENTS
DSM STAR 8,110 2008 / CHINA BULKER 448 DELIVERED GADANI
ADVENTURE 2,073 1995 / JAPAN GENERAL

CARGO

UNDISCLOSED DELIVERED ALANG
GLUON 3,192 1995 / JAPAN CONTAINER UNDISCLOSED DELIVERED ALANG
AURO 20,008 2005 / S.KOREA TANKER UNDISCLOSED DELIVERED ALANG
FIRSTEC 7,952 1997 / JAPAN WOODCHI

CARRIER

424 AS IS HONG KONG

On the other hand, for the domestic steel industry, India considers a 20% Safeguard Duty as US Tariffs Trigger Steel Dumping Fears. Following the U.S. move to impose 125% tariffs on Chinese imports, India is weighing a 20% safeguard duty on steel to counter potential dumping. The Steel Ministry, acting on the Directorate General of Trade Remedies (DGTR) recommendation, is considering fast-tracking a provisional 12% duty targeting Chinese and Vietnamese steel for 200 days, with further increases under review.

India’s steel imports hit a 10-year high of 9.5 million tons in FY25, while exports fell to a decade-low of 5 million tons — making India a net importer for the second year in a row. Officials fear China may redirect its surplus to India at below-cost rates, exacerbating injury to domestic producers. ASEAN routes are also under scrutiny for circumvention. The Finance Ministry is expected to finalize the tariff levels soon, amid growing urgency to protect India’s steel sector from a deepening global trade conflict.

Anchorage & Beaching Position (APRIL 2025)

VESSEL NAME TYPE LDT ARRIVAL BEACHING
SOCOL 9 GENERAL CARGO 3,672 08.04.2025 AWAITING
ATHENA AHTS 1,177 03.04.2025 AWAITING
ADVENTURE GENERAL CARGO 2,073 05.04.2025 10.04.2025

Chattogram, Bangladesh

Bangladesh’s ship recycling market remains subdued, with prices holding steady at last week’s levels despite limited local activity. In a significant development, the Bangladesh Ship Reprocessing Board, established under the Ship Reprocessing Act of 2018, officially began operations on April 10, 2025. This three-member board will now oversee all ship recycling activities in the country. The industry awaits next week’s decision on whether NOCs will be issued to HKC-compliant yards, while non-HKC yards face uncertainty as their previous extension expired on March 31 with no new extensions announced until at least July.

The broader economic changes also include the recent imposition of high U.S. tariffs. The 37% tariff imposed on Bangladesh comes amid tensions between the U.S. and China, creating additional pressure on the country’s export sectors, including recycled steel from ships. As Bangladesh prepares to graduate from least developed country status, the industry faces a crucial period requiring enhanced commercial capacity and stronger trade diplomacy. While the 90-day suspension of new U.S. tariffs has provided temporary relief, the market must navigate these trade challenges alongside its regulatory transition.

Anchorage & Beaching Position (APRIL 2025)

VESSEL NAME TYPE LDT ARRIVAL BEACHING
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

The ship recycling market remained subdued this week, with limited activity across the nation. Prices remained unchanged from last and the atmosphere in the region was cautious.

The recent executive orders from the U.S. mark a significant shift in economic policy. While targeting China with the highest tariff has prompted similar, the impact extends to many economies dependent on US exports.

For Pakistan, which has received nearly US$67 billion in US assistance since 1947, this shift presents serious challenges. The country’s economy, largely dependent on non-exportable services, now faces potential export losses due to decreased US consumer demand. Pakistan must develop a competitive economic value proposition through institutional reforms while carefully balancing its relationships.

Aliaga, Turkey

Turkey’s market remains stagnant as domestic scrap prices remain largely unchanged from levels seen before the recent Eid holiday. However, pressure is mounting on the market as several mills prepare to decrease their domestic scrap buying prices in response to falling imported values. The market saw a significant supply-demand imbalance, with numerous offers available, while mills have halted purchases despite their incomplete May shipment scrap procurements. This purchasing freeze by Turkish mills stems from several factors, including the escalating US-China tariff war and weak steel demand.

Market participants are closely watching for the first transaction that will break the current deadlock and establish a new reference price. Turkish shipbreaking scrap is currently priced between US$340-372 per ton delivered, though mills are increasingly using surcharges or discounts rather than changing list prices.

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 11 April 4 W-O-W % CHANGE
USD / CNY (CHINA) 7.30 7.27 -0.41%
USD / BDT (BANGLADESH) 121.49 121.37 -0.10%
USD / INR (INDIA) 86.03 85.04 -1.16%
USD / PKR (PAKISTAN) 280.58 280.16 -0.15%
USD / TRY (TURKEY) 37.87 37.96 +0.24%

Sub-Continent and Turkey Ferrous Scrap Markets Insights

Sub-Continent’s imported ferrous scrap markets remained subdued this week, weighed down by post-Eid sluggishness, global market volatility, and widening bid-offer gaps.

Trading activity across India, Pakistan, and Bangladesh stayed limited, while Turkey continued to face downward pricing pressure.

India’s imported scrap market remained quiet as buyers held back amid ongoing bid-offer mismatches and expectations of a price correction. UK/EU-origin shredded scrap offers were flat at US$390–395/ton CFR Nhava Sheva, while buyers countered at US$380– 385/ton. HMS 80:20 hovered around US$360–365/ton CFR, though import appetite remained weak due to the availability of cheaper domestic sponge iron and scrap.

Despite healthy domestic steel sales, firm freight rates and falling Turkish scrap prices added to buyer caution.

Post-Eid, Pakistan’s scrap market saw limited activity as mills remained cautious amid weak construction demand and firm import offers. UK/EU shredded was quoted at US$390–395/ton CFR Port Qasim, while UAE-origin material rose slightly to US$395– 400/ton. Domestic scrap was stable at PKR 135,000–140,000/t (US$487–505/ton), while rebars stood at PKR 238,000–242,000/t (US$849–863/ton) ex-works. Although electricity tariff relief brought some optimism, mills awaited clearer cues from upcoming budget announcements and construction sector demand before committing to imports.

Bangladesh’s imported scrap market continued to face headwinds due to persistent LC challenges and tight foreign exchange liquidity. Shredded offers stood at US$385– 395/ton CFR, and Australian HMS 80:20 was seen at US$365–370/ton. Rebar prices in Dhaka and Chattogram were reported at BDT 82,000–83,000/t (US$674–682/ton) and BDT 85,500–87,000/t (US$703–714/ton), respectively. Domestic shipbreaking scrap remained flat, with PNS at BDT 57,000–57,500/ton (US$469–473/ton) and HMS at BDT 55,500–56,500/t (US$456–464/ton) ex-yard.

Turkey’s imported scrap market weakened further as US-origin HMS 80:20 slipped by US$5/ton to US$365/ton CFR, driven by tepid mill interest. A deal for HMS 90:10 at US$369/ton CFR confirmed bearish trends, with shredded and bonus scrap at US$386/ton. Offers for US/Baltic HMS 80:20 held at US$365–370/ton CFR, while EU suppliers largely stayed out of the market, citing unworkable levels. Despite the soft tone, some traders expect prices to find support near US$360/ton CFR if billet demand revives in Asian markets.

 

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