Ship Recycling Still Looking for Solid Ground
Summary
The ship recycling market remained weak and largely unchanged over the week. Best Oasis reports subdued demand in India, soft recycled-steel prices in Bangladesh, growing HKC-compliant yard numbers in Pakistan but disruption from floods, and a stagnant picture in Turkey. Intermodal adds that HKC-compliance hurdles and a sluggish domestic steel market have constrained activity across the subcontinent, while Gadani (Pakistan) shows relative improvement with a planned eco-upgrade programme.
Key Points
- India: local market weak, low buyer interest and negative sentiment persist.
- Bangladesh: recycled-steel prices fall (small vessels quoted at USD 330–340), HKC compliance slowing yard activity.
- Pakistan: increase in HKC-compliant yards; flooding in Punjab has dampened activity but a $40m plan aims to upgrade 31 yards to eco-compliant status by 2026.
- Turkey: market largely unchanged and muted, though local steel demand may offer some support; lira weakness affects dynamics.
- Overall: HKC compliance, domestic steel demand and regional disruptions (trade measures, floods) are key headwinds keeping buyers cautious.
Content Summary
Best Oasis highlights continuing weakness in India and significant pressure on Bangladesh’s recycled-steel market, with smaller-vessel prices reflecting low demand. Pakistan is improving its compliance footprint but recent floods have reduced activity and disrupted the steel supply chain. Turkey’s market remains steady but stagnant, with currency movements tempering prospects.
Intermodal emphasises HKC-compliance challenges across subcontinent yards — Bangladesh has contracted from pre-HKC yard numbers, and many facilities are stalled or on hold. Alang’s earlier optimism has faded amid uncertainty over India–US trade relations and potential tariffs, which could shave around 0.5 percentage points from India’s fiscal-year growth forecasts. Gadani stands out for momentum on eco-compliance and government-backed upgrades.
Context and Relevance
Ship recycling links shipowners, cash buyers, yards and steel markets. Price movements in recycled steel and regulatory compliance (HKC/DASR) directly affect demolition decisions and yard operations. The push for eco-compliant recycling and government-backed upgrades (notably in Pakistan) is changing regional competitiveness. Traders, shipowners planning end-of-life dispositions and policy watchers should note how trade measures, weather events and currency shifts are influencing market activity.
Why should I read this?
Quick answer: if you deal with ship demolition, scrap steel or fleet disposal planning, this is the tidy weekly snapshot you need. Markets are quiet, compliance is reshaping supply, and regional shocks (floods, tariffs) are driving caution — we read the detail so you don’t have to.
Author style
Punchy — useful if you want the headlines fast. Not earth-shattering, but important for anyone tracking end-of-life shipping economics and recycling compliance trends.
Source
Source: https://www.hellenicshippingnews.com/ship-recycling-still-looking-for-solid-ground/
