- Indian recyclers witness ship arrivals in Jan’25
- Pakistani yards see zero activity amid economic instability
India: In January 2025, India’s ship-breaking sector led with 120,779 LDT, surging over 110% from December 2024’s 56,491 LDT. This also marked a sharp rise of more than 50% from January 2024’s 79,341 LDT.
The Alang ship-breaking yard saw stable ship arrivals, receiving 10 vessels for recycling in January, unchanged from December 2024.
Despite prices remaining steady around INR 500/LDT, Alang’s ship recycling market struggled with weak demand, a depreciating rupee, declining steel prices, and limited vessel arrivals, leaving capacity underutilised compared to Chattogram. Additionally, competition from Pakistan’s upcoming HKC-compliant yards and regulatory restrictions on non-green yards further slowed buying activity. However, market sentiment remained optimistic, with expectations of a recovery driven by supportive measures in the Budget and potential tariffs on cheap steel imports.
Pakistan: No ship-breaking tonnage was recorded in January, marking a dormant start for Pakistan’s ship recycling sector, mirroring December 2024’s empty tonnage. Y-o-y, this reflected a sharp decline from the 31,976 LDT recorded in January 2024. Notably, no ships were recycled in both January and December.
The Gadani ship recycling market remained stagnant, with no new arrivals and unsold tonnage highlighting the ongoing slowdown. Rates stayed unchanged, while declining demand squeezed profit margins, impacting both the CRC and HRC markets. Many rerolling mills ceased operations.
The market is expected to remain subdued through Q1, with potential recovery post-Ramadan.
Economic instability, LC shortages, and HKC compliance issues continued to hinder activity, though slight improvements in steel prices and PKR recovery provided minimal relief. Yard upgrades and financial aid were seen as possible drivers for a sector revival later in 2025.
Bangladesh: In January, Bangladeshi recyclers processed approximately 96,399 LDT, marking a significant surge of nearly 120% from the 43,935 LDT recycled in December. Y-o-y, this reflected an increase of nearly 75% compared to the 55,078 LDT recorded in January 2024.
Nine ships were recycled during the month, five more than in December, indicating an improvement in m-o-m performance.
Despite steady arrivals, Bangladesh’s ship recycling market remained subdued due to economic instability, a weakening Taka, and stagnant steel prices. Regulatory changes mandating environmental compliance slowed vessel purchases, with non-compliant yards unable to secure NOCs. Recyclers struggled with inflation, VAT hikes, and the pressure to meet HKC compliance, leading to fewer competitive offers. While a few notable sales took place, high-priced unsold vessels and limited cash buyer activity dampened momentum. The market is expected to remain cautious, with potential improvements expected after mid-2025.
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