- Alang attracts vessels amid Bangladesh slowdown
- Political uncertainty hurts Bangladesh recycling activity
South Asian ship recycling trends diverged on 27 January, with India gaining market share and Bangladesh losing momentum amid weak bids and political uncertainty. Meanwhile, Pakistan recorded a fragile recovery supported by improved pricing and stable local fundamentals.
India Regains Position in South Asian Ship Recycling Market
India has re-emerged as a key player in the regional ship recycling market, with Alang recyclers securing several specialist vessels this week, including an LNG carrier, previously targeted by Bangladeshi buyers. Bangladesh’s weak bidding activity has allowed India to climb back to second place in market rankings.
Despite pricing volatility, vessel inflows into Alang remain strong, with over 23,000 LDT currently waiting for delivery. However, concerns persist over sustainability, as the Indian rupee weakened sharply against the US dollar, falling over 1% in five days and closing near INR 92.
With the Bangladesh sidelined due to election-related uncertainty, India is expected to remain the preferred destination in the near term, while Pakistan absorbs limited volumes.
Bangladesh Ship Recycling Market Loses Momentum
Bangladesh fell sharply in South Asia’s ship recycling rankings this week, recording minimal bidding activity and weak interest in available vessels. Most offers remained below levels seen in India and Pakistan, causing many ships to divert to Alang and Gadani. As a result, Chattogram reported an unusually quiet period, including an empty port position for the first time in a long while.
A stronger taka near BDT 122, weak steel prices around $487/t, and low resale demand continued to pressure recyclers. Political uncertainty and security concerns further hurt sentiment, limiting deliveries in the near term.
Pakistan’s Gadani Market Shows Signs of Recovery
Pakistan’s ship recycling market has shown renewed strength as reduced inflows of Iranian steel products have improved sentiment and pricing, supporting better-priced purchases at Gadani. Pakistan’s rise in regional price rankings, following Bangladesh’s weakness, has also helped divert some vessels from Alang.
However, the recovery remains fragile, with Gadani’s anchorage largely empty through much of 2026 due to limited vessel availability. Supply constraints and the upcoming Chinese New Year holidays may prolong tight conditions. On the positive side, local fundamentals are stable, with the rupee strengthening to PKR 278 and steel plate prices steady at $587/t. Recent fixtures may gradually improve activity.
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