- Rising plate prices, stronger rupee boost Indian recyclers’ margins
- Bangladesh struggles amid falling steel plate prices, weaker taka
Ship recycling markets across the Indian sub-continent remained under pressure in the week ended 23 December 2025, though prices of both containers and tankers were unchanged across major hubs. India showed early signs of stabilisation despite weak prices, the downturn in Bangladesh persisted amid falling steel plate prices, and Pakistan’s outlook improved cautiously even as operational delays continued.
Ship-recycling volumes increased in India and Bangladesh w-o-w, while they remained stable in Pakistan.
Alang market shows early signs of stabilisation
The Alang ship-recycling hub in India showed some signs of improvement despite prices remaining weak. The rupee showed notable volatility but strengthened sharply this week, appreciating to INR 89 against the US dollar, helping ease some pressure on recyclers. At the same time, local steel plate prices rebounded strongly, rising by about $10/t over five days and almost offsetting recent losses, which improved near-term market sentiment.
Additionally, a few private market deals reached Alang’s waterfront, bringing nearly 26,000 light displacement tonnes (LDT) of incoming tonnage, including a couple of sizeable tankers. These arrivals are expected to provide short-term support and keep recycling operations active despite broader market challenges.
Chattogram struggles amid falling plate prices, weaker taka
Recyclers in Chattogram, Bangladesh, remained under stress this week, as the market witnessed a sharp downturn. The US dollar strengthened by 20 basis points, leading to the taka weakening to BDT 122.30, while local steel plate prices fell sharply by $12/t within just five days to around $485/t. Steel plate prices were above $600/t less than 45 days ago, highlighting the severity of the downturn.
Recently, higher tariffs from the US, a weaker taka, falling steel plate prices, and limited availability of suitable vessels have disrupted regular trading activity. Ongoing yard upgrades and infrastructure work, combined with firm freights, have also added pressure on market operations.
Despite ongoing HKC progress, the sector has quietly contracted this year, with the number of active ship recycling yards shrinking from around 35 to just 22, even as a few additional projects remain on the drawing board.
Strong market fundamentals support Gadani despite operational hurdles
Domestic fundamentals have recently provided some support to Gadani. Local steel plate prices rose by over $4/t w-o-w to around $580/t, offering one of the strongest margins in the region. Meanwhile, the Pakistani rupee ended the week relatively stable after a mild fluctuation.
However, operational challenges persist. Despite being the only non-tide-dependent recycling destination in the Indian sub-continent with relatively flexible inward requirements, vessel deliveries continue to face delays following sluggish, incomplete HKC implementation, highlighted by a mini-VL idling at anchorage for nearly 20 days.
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