- Currency depreciation, sluggish steel demand pressure India
- Approaching HKC deadline weighs on Pakistan, Bangladesh
South Asia’s ship-breaking markets witnessed mixed trends in February 2025. While India saw higher arrivals m-o-m, the tonnage processed by Pakistan and Bangladesh fell significantly.
India: In February 2025, India’s ship-breaking sector led with 144,683 light displacement tonnes (LDT), surging by 20% from January’s 120,779 LDT. This also marked a sharp, more than six-fold rise from February 2024’s 23,821 LDT.
The Alang ship-breaking yard saw an increase in arrivals, receiving 11 vessels for recycling in February 2025, one more than from January 2025.
India’s ship-breaking market struggled in February amid weak fundamentals, the rupee’s depreciation, and sluggish steel demand. Steel prices fell over $15/LDT, while US tariffs on Chinese steel raised oversupply concerns, pressuring prices. Comparatively limited vessel arrivals and a buyer-seller price gap stalled negotiations, keeping activity slow.
While recyclers maintained a competitive edge, tightening supply and declining sentiment left the sector struggling for recovery, with participants seeing no immediate signs of improvement.
Pakistan: Only a small tonnage of around 5,204 LDT arrived in February, marking a slow start for Pakistan’s ship recycling sector in 2025, which recorded nil tonnage in January 2025. This reflected a sharp decline of 55% from the 11,618 LDT recorded in February 2024. Notably, only one ship was recycled in February 2025.
Pakistan’s ship-breaking market remained weak in February, struggling with economic instability and stagnant steel prices. Gadani saw minimal activity, with limited vessel arrivals and recyclers hesitant to raise bids. The need for yard upgrades amid the looming Hong Kong Convention (HKC) deadline and an influx of cheaper Chinese steel added further pressure.
Despite brief rebounds, overall market sentiment was low, with buyers waiting for bulk carrier prices to drop below $440/LDT. Without strategic bidding and infrastructure upgrades, Pakistan risks losing competitiveness in the regional ship recycling market.
Bangladesh: In February, Bangladeshi recyclers processed approximately 73,989 LDT, marking a fall of nearly 23% from the 96,399 LDT recycled in January. This also reflected a decrease of nearly 29% compared to the 140,130 LDT recorded in February 2024.
Seven ships were recycled during the month, two less than in January, indicating a decrease in m-o-m performance.
Bangladesh’s ship-breaking market remained active in February, securing sizeable tonnage despite political and economic uncertainty. Recyclers acquired Panamax bulkers and larger LDT vessels, but declining offers and the upcoming HKC compliance deadline pressured sentiment.
Slow infrastructure progress also limited demand, while tightening vessel supply and delayed yard upgrades posed challenges. Although the taka briefly showed strength, economic instability and weak reforms kept market conditions uncertain, leaving recyclers cautious about future activity.
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