- Firm steel prices and stronger rupee support Gadani
- Bangladesh regains momentum after BNP election victory
Sub-continent ship recycling markets were shaped by vessel availability, market fundamentals, and political developments in the week ended 24 February. Bangladesh regained momentum after the BNP’s election win, supported by firmer pricing.
India’s Alang saw steady specialist tonnage inflows amid weaker plate prices and currency swings. Pakistan’s Gadani yards recorded improved activity, backed by firm steel prices, a stronger rupee, and rising HKC-compliant capacity, sustaining cautious optimism.
India: Mixed fundamentals persist amid steady inflow of specialist tonnage
Alang recyclers maintained steady arrivals of sanctioned and specialist vessels across LDT segments. While Bangladesh led in total LDT intake, India held an edge in offshore and non-ferrous units, supported by HKC-compliant yards and ample beaching space.
Domestic fundamentals remained volatile, with the Indian rupee dipping slightly and steel plate prices falling below $400/t, squeezing recycler margins. Inflation rose to 2.75% in January, continuing a steady upward trend and adding economic uncertainty.
Although India struggled to compete with stronger pricing in Pakistan and Bangladesh for larger LDT units, its structural advantages and diversified vessel intake sustained cautious yet resilient market sentiment.
Bangladesh: Political clarity and firm pricing boost sentiment
Chattogram recyclers regained momentum this week, climbing back to the top of regional rankings amid improved political stability following the BNP’s decisive election victory. Aggressive offers for well-conditioned, higher LDT vessels enabled Bangladesh to outpace a firm Pakistan market.
Stronger pricing attracted quality tonnage, including large bulkers and a nearly 27,000 LDT LNG unit awaiting delivery. A firmer Taka and a $16/t rise in local steel plate prices further supported sentiment, fostering cautious optimism for the weeks ahead.
Pakistan: Gadani active despite regional leadership shift
Although Bangladesh reclaimed regional leadership, Gadani yards recorded improved activity, with several large bulkers concluded and five vessels reported at anchorage.
Domestic fundamentals remained supportive, with steel plate prices steady at around $594/t and the Pakistani rupee strengthening against the US dollar.
Despite inflation volatility and external trade uncertainties, increasing HKC certifications and steady arrivals sustained cautious optimism for the year ahead.
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