- Indian rupee volatility and weak steel prices pressured buyer sentiment, despite strong arrivals at Alang.
- Gadani strengthened its position with Pakistan’s second HKC-approved yard.
South Asian ship recycling markets remained mixed as of 3 February, with India under currency pressure, Bangladesh showing cautious recovery, and Pakistan gaining ground through improved regulatory compliance, amid ongoing volatility in steel prices and exchange rates.
Indian ship recycling market faces currency pressure amid strong activity
The Indian rupee remained volatile, weakening by another 25 basis points and briefly touching INR 92.18 against the US dollar before closing at INR 91.82. Non-regulatory rates stayed above INR 93, increasing cost pressures for buyers. Local steel plate prices fell to nearly $398/t before recovering slightly to around $401/t, still below last week’s levels. These factors dampened sentiment and kept Indian offers at the lower end of the regional pricing range.
Despite weaker fundamentals, Alang remained the busiest hub, receiving six vessels totaling nearly 47,000 LDT, including a large tanker. With regional currencies weakening in tandem, market participants are closely watching potential corrections in Pakistan and Bangladesh.
Bangladesh ship recycling market shows cautious recovery
After losing several vessels to regional competitors in recent weeks, Bangladeshi buyers returned to the market by securing the only reported Capesize bulker at firm levels. This was notable amid recent yard congestion and financial pressure. Chattogram also saw improved activity, with multiple tanker arrivals, including one already delivered.
However, fundamentals remain weak. Steel plate prices stayed near $487/t, while the taka softened to BDT 122.95, squeezing recycler margins. Political uncertainty ahead of elections continues to weigh on sentiment. Meanwhile, competition for HKC-compliant tonnage remains firm, supported by 22 approved yards.
Gadani strengthens position with second HKC-approved yard
Pakistan’s Gadani market gained momentum as Salams International became the country’s second Class NK-approved, HKC-certified yard. This development enhances international credibility and is expected to boost buyer confidence, gradually strengthening Gadani’s position in the region.
Local steel prices remained stable at a strong $587/t, while the rupee weakened to around PKR 282. Despite currency pressure, several Handymax and Panamax bulkers were sold, supported by comparatively firm offers and steady demand for larger units. Gadani’s improving compliance and infrastructure continue to support its growing role in regional ship recycling.
Leave a Reply