- Political uncertainty weighs on Bangladesh confidence
- Gadani benefits from stable currency fundamentals
South Asian ship recycling markets showed stable trends w-o-w, India and Bangladesh remained under pressure due to weak prices and cautious sentiment, while Pakistan improved on HKC progress, stable fundamentals, and rising confidence despite lingering challenges.
Alang under pressure amid weak plate prices, softer INR
India’s ship recycling market remained weak w-o-w, pressured by falling steel prices and a softer rupee. Despite increased HKC-certified capacity, limited vessel inflows constrained activity. Economic resilience and strong GDP growth offer cautious optimism for future market support.
A market participants stated that, “the ship-recycling market is extremely quiet, with breakers reporting no vessels currently available for recycling. Tanker levels of $410-420/t and container levels of $420-430/t are being discussed, though these are not actual offers.”
Another market participants heighlighted, Sentiment remains weak, with limited buying interest. Indicative prices are around $400/t (±$20-30), and recyclers currently favor specialized and OFAC vessels, as demand for tankers, containers, and bulkers stays muted.
Chattogram under pressure amid softer pricing, cautious sentiment
Bangladesh’s ship recycling market sentiment softened w-o-w, despite an otherwise relatively healthy quarter. Prices eased as Bangladeshi buyers turned cautious after absorbing significant tonnage earlier, tightening resale options.
Domestic fundamentals were mixed, with a firmer taka and flat steel prices, strong anchorage activity, but political instability weighed on confidence, keeping local offers under pressure despite medium-term sector optimism.
Market participants stated that ship-recycling sentiment in Bangladesh remains very soft, with a lack of aggressive buyers and limited deal interest. Bulker prices were indicated at $380-390/t, while tankers were assessed at $400-415/t. Overall demand remains subdued, keeping activity muted and price discovery weak.
Gadani gains momentum amid HKC progress, stable fundamentals
Pakistan’s ship recycling market showed improving sentiment w-wo-w, supported by the commissioning of its first HKC-approved yard and continued progress on infrastructure upgrades.
Fundamentals remained relatively stable, with a firmer PKR and resilient steel plate prices compared with regional peers. While cheap steel imports weighed on local buying appetite at times, easing inflation and expectations of additional HKC accreditations continue to underpin confidence, positioning Gadani as an increasingly competitive regional recycling hub.
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