- Bangladesh shows cautious recovery
- Gadani yards witness multiple deals
South Asian ship recycling markets showed divergent trends this week, with Pakistan gaining momentum, Bangladesh showing tentative recovery, and India seeing improved sentiment on the back of currency gains and higher steel prices. Shifts in exchange rates, plate prices, and regulatory positioning continued to shape buyer behaviour across the region.
India sees tentative improvement
India’s ship recycling market showed signs of stabilisation after several difficult weeks. Alang buyers remained selective but managed to secure a handful of notable units, including a high-profile LNG vessel and some smaller ships, keeping total volumes near 36,000 LDT.
Sentiment improved as domestic fundamentals turned supportive. Local steel plate prices jumped by around $14/t to nearly $415/t, while the US dollar weakened sharply against the Indian rupee. The stronger rupee provided cost relief to recyclers and improved bidding confidence. Structurally, Alang continues to hold an advantage, with the majority of yards HKC-compliant, ensuring India remains a reliable destination for compliant tonnage despite fluctuating weekly rankings.
Bangladesh market shows cautious recovery
Bangladesh’s Chattogram market showed renewed activity after a weak start to the year that had pushed offers below the psychological $400/LDT mark. Yard utilisation improved as delayed deliveries from last week were completed and a rare large LDT tanker arrived, lifting short-term sentiment.
Domestic fundamentals also turned favourable. The taka appreciated slightly against the US dollar, while local steel plate prices rebounded by nearly $9/t to about $494/t after two stagnant weeks. These gains helped ease margin pressure for recyclers. However, caution persists ahead of the mid-February national elections, with political uncertainty continuing to temper aggressive buying.
Pakistan leads regional recovery
Pakistan emerged as the strongest performer in the region, with Gadani yards securing multiple Panamax and handy bulker units at firm prices, some reportedly exceeding $400/LDT. Local fundamentals provided strong support, as steel plate prices surged by nearly $8/t to an industry-leading $597/t.
Market confidence was further boosted by the arrival of a near-7,000 LDT vessel and the recent approval of Pakistan’s second HKC-certified yard. Improved compliance and infrastructure are strengthening Gadani’s long-term competitiveness and positioning it as a serious regional contender.
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