- Improved liquidity supports trade activity in Bangladesh
- Fluctuating rupee, Middle East tensions weigh on Indian activity
South Asian ship recycling markets remained firm in Week 17 (ending 24 April 2026), though supply constraints continued. Bangladesh and Pakistan were supported by strong pricing and stable currency levels, while India remained under pressure amid currency weakness and persistent supply-side constraints.
India: Market under pressure amid currency weakness, supply constraints
The Indian ship recycling market remained under pressure in Week 17, as the rupee continued to fluctuate, reflecting persistent external pressure from unresolved geopolitical tensions around the Strait of Hormuz. The escalation in transit risks has continued to weigh on India’s energy import outlook.
At Alang, steel plate prices remained largely stable w-o-w at INR 40,700-41,500/t (around $435-444/t), keeping India the lowest-priced destination in the subcontinent. With the pre-monsoon window narrowing, the key challenge remains the lack of available tonnage rather than demand capacity.
According to a market participant, “Ship-breaking sentiment remained positive; however, activity was constrained by limited vessel availability. Market participants noted that ongoing war-related disruptions continued to impact supply, with only section ships seeing relatively higher activity, which was also affected.”
Pakistan: Firm pricing supported by structural, geopolitical advantages
The Bangladeshi ship recycling market remained firm in Week 17, supported by stable currency levels and strong steel plate prices at PKR 188,000/t (around $672/t). This kept Gadani at its strongest pricing position of the year, further widening the gap with India and reinforcing its competitive standing.
Geopolitical developments continued to strengthen Pakistan’s position, with the ongoing Hormuz disruption enhancing its Gulf proximity advantage. Improved compliance, with three Hong Kong Convention (HKC)-certified yards operational, and alignment of vessel types with yard capacity supported market fundamentals.
Bangladesh: Firm market supported by pricing strength, improved LC flow
Bangladesh’s ship recycling market remained firm in Week 17, supported by steady steel plate prices at BDT 69,400-71,000/t (around $571-584/t) and a stable currency environment. Improved Letter of Credit (LC) approvals enhanced transaction flow, reducing earlier bottlenecks and supporting buyer confidence.
Chattogram continued to lead as the highest-paying destination in the region, with strong pricing and stable macro conditions. However, vessel availability remained the key constraint, as tight supply and firm freight markets limited inflows.
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