Ship Recycling: Overall sentiments positive in India: STAR ASIA

Ship Recycling: Overall sentiments positive in India: STAR ASIA

Alang, India

India’s ship recycling market is navigating a period of moderated trading activity amid geopolitical tensions and market volatility, though it finds support from rising steel plate prices and HKC compliance.

Overall sentiments were positive at the prevailing prices.

Anchorage & Beaching Position (MAY 2025)

Chattogram, Bangladesh

Bangladesh continues to face significant operational hurdles as yards work toward achieving HKC compliance, a transition that has notably reduced vessel inflows and dampened market activity while buyers carefully monitor regulatory developments. The situation is further complicated by the current regulatory environment, where no NOCs are being issued to non-green, non-HKC-compliant yards, resulting in approximately five vessels waiting in the pipeline with uncertain prospects.

Despite these challenges in the recycling sector, Bangladesh has recently seen improved restocking demand for imported ferrous scrap as buyers follow their typical 15-20 day inventory replenishment cycle, with Australian HMS scrap currently priced around US$360-362 per ton CFR Chattogram and modest increases in rebar prices over the past quarter.

Anchorage & Beaching Position (May 2025)

Gadani, Pakistan

Pakistan continues to experience inactivity. Transaction volumes have dwindled to minimal levels as recyclers exhibit limited buying interest and the few tentative offers that do emerge remain significantly below those seen in neighbouring markets.

Aliaga, Turkey

Market remains sluggish this week with no new activity to report. Prices over the last few weeks have largely remained unchanged.

Sub-Continent and Turkey ferrous scrap markets insights

INDIA

India’s imported scrap market remained under significant pressure amid a confluence of rising freight costs, weak domestic steel demand, and a strategic shift toward more economical alternatives such as sponge iron and pellets. Despite occasional inquiries, buyers maintained their hesitancy with shredded material offered at US$365-375/t CFR Nhava Sheva against bids at US$360-365/t, while HMS 80:20 faced similar resistance with offers at US$350-355/t CFR meeting bids no higher than US$345-350/t.

BANGLADESH

Bangladesh continued to face pressure from seasonal factors, with the ongoing monsoon dampening construction activity and subsequently reducing scrap demand. Although the letter of credit constraints has eased, trade remained limited as mills focused on inventory management amid subdued domestic steel sales. Australian shredded was offered at US$375-380/t CFR Chattogram, with HMS 1 at US$360-365/t and HMS 80:20 at US$350-355/t, but cautious buyers continued to hold back, maintaining the market’s overall soft sentiment.

PAKISTAN

Pakistan’s market similarly struggled against headwinds of weak construction demand, sluggish steel sales, and compressed rebar margins. Mills have postponed fresh bookings due to sufficient inventories and an anticipated slowdown during the upcoming Eid holiday. Despite offers for shredded material from the UK, EU, and UAE at US$375-380/t CFR Port Qasim, most buyers limited their bids to US$370-375/t, finding higher levels economically unviable in the current market environment.

TURKEY

In stark contrast, Turkey’s imported scrap market demonstrated remarkable resilience, driven by robust restocking activity and firm seller positions. Mills showed increased buying interest, with a significant US-origin deal reportedly concluded at US$347/t CFR for HMS 80:20 and US$367/t CFR for shredded and PNS scrap. US-origin bulk HMS 80:20 offers climbed US$5/t day-on-day to US$347/t CFR, with sellers from both the US and EU maintaining firm offers around US$345-350/t CFR. Market sentiment received an additional boost from optimism surrounding upcoming peace talks scheduled in Istanbul, further reinforcing bullish expectations and likely continued demand from Turkish mills.

Author: shipping inbox