- Regional instability increased market uncertainty
- India remained lowest-priced recycling market
Ship recycling activity across the Indian sub-continent showed mixed trends in the week ended 3 March. Arrivals were steady in some locations, but tightening tonnage supply and rising Middle East tensions continued to shape pricing and sentiment. Escalating regional conflict may hamper vessel flows to the sub-continent, potentially tightening supply and increasing recycling prices.
India: Strong arrivals contrast weak fundamentals
Alang remained the lowest-priced sub-continent recycling market and recorded the highest number of vessel arrivals this week, including a near-30,000 LDT LNG carrier, a 25,000+ LDT container vessel, and several smaller reefers, bulkers, and general cargo ships, largely HKC-compliant units.
Despite firm inflows, fundamentals stayed weak. Local steel plate prices slipped to $400/t, and the rupee weakened against the US dollar, pressuring margins. Rising Middle East tensions could disrupt shipping routes, reduce vessel inflows, and tighten supply, potentially supporting firmer recycling prices.
Bangladesh: Tonnage tight as global tensions weigh on sentiment
Bangladesh continued to lead the sub-continent ship recycling market, though fresh vessel supply remained limited amid global volatility. A nearly 20,000 LDT bulker and a few smaller units arrived at Chattogram, but overall bidding activity stayed cautious.
Local fundamentals softened, with steel plate prices easing to $508/t and the Taka weakening against the US dollar. Escalating Middle East tensions and the risk of higher freight and bunker costs may further restrict vessel inflows, tighten supply, and increase price volatility in the coming weeks.
Pakistan: Arrivals thin as regional tensions weigh on Gadani
Gadani’s recent momentum has slowed, with no fresh arrivals reported this week and only two vessels remaining at anchorage. Larger LDT units continue to be scarce despite earlier buying interest, as elevated freight markets limit global recycling supply.
Domestic fundamentals have softened, with steel plate prices easing to around $507/t and the rupee weakening against the US dollar. Rising geopolitical tensions near Iran, along with internal political uncertainty, may further disrupt vessel movements, restrict imports, and create volatility in recycling prices in the weeks ahead.
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