Ship-breaking in South Asia: Alang sentiment weakens, Bangladesh stabilizes, Gadani inflows constrained

• Limited vessel arrivals eased Alang’s empty anchorage
• Bangladesh market showed early signs of stabilization

South Asian ship recycling markets remained mixed, with India facing weaker sentiment, Bangladesh showing tentative recovery amid political uncertainty, and Pakistan supported by strong fundamentals but constrained by limited HKC-certified capacity and low vessel inflows.

Alang sentiment weakens as steel prices reverse gains

After strong post-New Year gains, India’s steel plate prices reversed this week, slipping $6/t w-o-w and erasing recent increases to settle near $400/t. A further rupee depreciation added to market caution, weakening sentiment among Alang recyclers. Buyers became more conservative amid global economic and political uncertainty, despite tight vessel supply.

Although Alang exited the “empty anchorage” phase with limited arrivals, sustained price stability and confidence will be crucial for Indian recyclers to compete with Pakistan and Bangladesh, where negotiating interest is gradually returning.

Chattogram shows tentative recovery amid uncertainty

After sharp declines at the end of 2025, Bangladesh’s ship recycling market showed early signs of stabilization this week, with demand beginning to firm despite ongoing political uncertainty ahead of elections.

However, supply remained weak, with only one new vessel delivered and Chattogram’s anchorage ending the week empty. Delays in L/C processing due to changes at the central bank also impacted activity. While steel plate prices resumed trading around $500/t, fundamentals remain fragile, and recyclers may stay cautious until political clarity improves.

Gadani fundamentals firm but inflows remain constrained

Pakistan has shown renewed interest in ship recycling in early 2026, with enquiries emerging from buyers upgrading yards to HKC standards. However, offers have continued to trail India’s, limiting competitiveness despite relatively strong fundamentals. Local steel plate prices rose $6/t w-o-w to $585/t, well above regional peers, while the PKR strengthened slightly.

Despite this financial stability, vessel inflows remain weak due to limited HKC-certified yards and certification hurdles, leaving Gadani’s anchorage empty for a second consecutive week. Improved competitiveness and certification readiness will be key to capturing higher tonnage in 2026.