Wirana market outlook report shows ship recycling prices hold steady despite softer steel markets
Ship recycling prices across key recycling destinations have remained broadly stable despite weaker conditions in steel markets, cautious buying and pressure on steel prices Wirana Shipping’s latest market outlook report has shown. The report points to a market in which ship recyclers are largely maintaining their prices even as demand for steel remains uneven and buyers remain selective. Prices offered by ship recyclers in India, Bangladesh and Turkey have continued at current levels, while Pakistan has emerged as the market most exposed to potential softening in the coming weeks.
The report highlighted a clear disconnect between weaker steel market sentiment and ship recycling pricing. India’s steel market continued to soften without triggering lower prices from ship recyclers, while Bangladesh remained stable despite slower demand for steel used in construction and industry. In Pakistan, pressure has been more pronounced, with recent reductions in steel and scrap prices reversing the gains made over the previous 30 days and leaving traders and steel mills holding higher-priced inventories. This has added to expectations that prices offered by ship recyclers in Pakistan could come under pressure in the weeks ahead.
Bangladesh could see improved sentiment if the new government’s June 2026 budget includes the expected announcement of major infrastructure projects to stimulate the economy. Steel plate prices have increased, which the report described as encouraging for ship recyclers, while relatively more vessels have been offered for recycling in Chittagong and recyclers have shown keen interest without raising their prices. This gives Bangladesh a more constructive forward-looking element within an otherwise cautious regional market, although the report also noted that demand for steel products has slowed and local steel mills remain cautious buyers.
Turkey also remained stable, with ship recyclers maintaining their prices despite uncertainty over whether recent increases in construction steel prices will last. The report noted that the increase has not been supported by strong demand, while the supply of vessels has slowed compared with previous weeks. Across the wider market, the supply of ships available for recycling remains selective rather than abundant, with vessels from the offshore, dry cargo and tanker sectors offered in recent weeks but relatively few transactions concluded so far. Wirana’s outlook indicated that more deals could follow as vessels currently being offered remain in the market.
The report also noted that conditions in the wider shipping market continue to influence recycling supply. Improved demand in parts of the tanker market, better charter rates in the dry cargo sector and continued strength in the container charter and secondhand markets are being watched alongside a recycling market where vessel supply remains selective rather than abundant.
Rakesh Khetan (pictured), Chief Executive Officer of Wirana Shipping, said: “The latest market picture shows that ship recycling prices are proving resilient even as steel markets soften in several key destinations. This is not a market being driven by aggressive sentiment, but by discipline, selectivity and careful price management. With supply moving at different speeds across regions, more vessels being tested in some segments, and Bangladesh watching for a possible infrastructure-led demand signal, the coming weeks will be important in showing whether today’s stable price levels can translate into concluded deals.”