- Monsoon season restricts vessel beaching operations
- Stable currencies support recycling market confidence
South Asian ship recycling market remained subdued in Week 22 amid Eid holidays, limited vessel availability, and the approaching monsoon season. While stable currencies and firm steel plate prices supported sentiment, recycling activity remained slow. Demand for recyclable vessels stayed healthy, but seasonal disruptions and tight vessel supply continued to weigh on the market.
Alang: Rupee strengthens, but monsoon limits activity
India’s ship recycling market remained subduded in Week 22, supported by a stronger rupee and slightly firmer domestic steel plate prices at INR 38,500-39,200/t ($402-409/t). However, activity remained weak due to limited vessel availability and the approaching monsoon season. Market participants described conditions as “lockdown-like,” with most end-of-life vessels heading to Bangladesh, where buyers were offering $40-50/ldt higher prices. Only around 11 vessels reportedly arrived in India last month.
Elevated freight rates and subdued domestic demand also continued to pressure recycling activity. Meanwhile, the government issued India’s first ship recycling credit note, marking a positive step toward promoting sustainable recycling practices. Alang is expected to remain quiet through the monsoon period.
Chattogram: Eid holidays, monsoon concerns slow activity
Bangladesh’s ship recycling market remained stable in Week 22, supported by a steady USD/BDT exchange rate, while domestic steel plate prices held at BDT 66,000-66,700/t ($537-543/t). However, Eid al-Adha holidays slowed activity in Chattogram, with cash buyers and recyclers largely inactive.
Improved LC availability and financing conditions provided support, but limited vessel availability and the approaching monsoon season continued restricting fresh beaching activity. Demand for recyclable vessels remains intact, though weather-related constraints and a shortage of available tonnage are keeping sentiment cautious.
Gadani: Stable rupee, firm plate prices support market
Pakistan’s ship recycling market remained firm in Week 22, supported by a stable USD/PKR exchange rate and strong domestic steel plate prices at PKR 195,000/t ($700/t). However, Eid al-Adha holidays slowed activity at Gadani, with minimal beaching reported.
The rupee remained one of the region’s strongest currencies, backed by higher interest rates and steady remittance inflows. Despite firm pricing and healthy demand fundamentals, limited vessel availability and the approaching monsoon season continued to restrict recycling activity.
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