South Asia: Ship recycling markets remain subdued; India leads in arrivals despite low prices

• India faces pressure from falling steel tags, weak rupee
• Pakistan struggles amid imports of cheap Iranian steel

South Asia’s ship recycling markets stayed cautious amid weak steel prices, currency pressure, and low vessel inflows. India led in terms of arrivals despite recording the lowest regional pricing, as Bangladesh and Pakistan remained subdued.

India: Tonnage inflow sustains momentum despite prolonged weakness

India’s ship recycling market continued its paradoxical run — stuck at the bottom of the pricing chart yet leading in incoming tonnage. Alang recyclers, though cautious, maintained steady activity with new arrivals including mini-VLCCs, even as many operators stayed on the sidelines.

Domestic steel plate prices fell further by about $2/t w-o-w to $389/t, extending losses, totalling over $50/t in recent months. The rupee weakened to a record low against the US dollar, squeezing recyclers’ already thin margins.

Bangladesh: Market stagnates amid currency slide, weak steel demand

Bangladesh’s ship recycling market remained sluggish, with no viable tonnage arrivals, as buyers refrained from matching sellers’ high price expectations. Even proactive recyclers paid above-market rates to sustain operations amid shrinking margins.

A steep fall in the Bangladeshi taka against the US dollar and a sharp drop in domestic steel plate prices to around $520-525/t deepened uncertainty, keeping sentiment weak and vessel inflow stagnant in Chattogram.

Pakistan: Weak fundamentals, HKC delays weigh on market confidence

Pakistan’s ship recycling market remained under heavy pressure as offers dipped below $400/LDT, weighed down by a flood of cheap Iranian steel imports. Despite local plate prices holding at around $614/t — well above competing markets — activity in Gadani stayed muted, with no fresh arrivals recorded.

The Pakistani rupee weakened further against the US dollar, while inflation surged to 6.2%, tightening cost margins. With HKC accreditations still pending and only temporary DASR approvals keeping operations afloat, recyclers remain stranded in uncertainty.

Tonnage received last week

Gadani Port recorded 8,522 LDT this week, unchanged from the previous week.
Alang Port received 49,087 LDT, down from 85,759 LDT in the previous week.
Chattogram Port handled 10,933 LDT, maintaining the same level as last week.