South Asian ship-recycling markets witness slowdown due to currency deterioration, weak steel prices

• Pakistan’s HKC approvals ongoing, next batch in Q1
• Chattogram market cools after Nov surge in tonnage

Ship-recycling markets in India, Bangladesh, and Pakistan remained subdued this week amid limited vessel supply, and falling steel plate prices. HKC upgrades continue, but low arrivals and cautious buying suggest slow activity through the holiday season.

Zero arrivals in Alang 

India’s ship-recycling market weakened further as Alang recyclers struggled to secure standard vessels due to soaring global freight rates, resulting in zero new arrivals this week.

Market fundamentals also deteriorated, with the rupee sliding 70 basis points and touching a new low against USD. Local steel plate prices dropped $4/t to about $387/t, hinting at lower offers ahead.

Despite long-standing HKC compliance, weak fundamentals keep Alang’s competitive edge blunted; activity is marginally better than neighbours but tight vessel supply and soft domestic demand suggest the market will remain subdued.

Chattogram market cools after tonnage surge in Nov’25 

Bangladesh’s ship-recycling market cooled this week after strong HKC progress and heavy November tonnage arrivals due to limited availability and lower offer levels for Chattogram’s yards.

Bangladesh’s scrap sentiment weakened as the BDT fell, steel plate prices dropped and no new arrival was reported. HKC upgrades continued and inflation plus policy uncertainty kept buyers cautious.

Recyclers are currently focused on recently-arrived large LDT LNG vessels at the HKC-certified yards but in the backdrop of limited supply and weak sentiment, Bangladesh’s ship-recycling market is set for a quiet Christmas season.

Gadani market idle, steel prices drop 

Prime Green Recyclers has become the first HKC-approved yard in Gadani, marking a major milestone for Pakistan’s ship-recycling sector.

Market conditions in Gadani, however, remain weak, with prices tracking India. Vessel shortages and limited HKC-compliant yards have kept the anchorage idle for nearly a month. Activity stalled after a brief September pickup; steel plate prices fell to $575/t.

Pakistan’s ship-recycling sector has more progress to make, with the next HKC approvals expected in Q1 2026, while additional Bangladesh yards are nearing completion of upgrades and will gain HKC certification soon.