- Indian sentiment improves amid progress towards EU-approved recycling status
- Bangladesh recovers as beaching activity resumes after monsoon disruptions
South Asian ship recycling markets remained steady during the week ended 1 August. India strengthened on a firmer rupee and progress towards EU-approved recycling status, Bangladesh recovered as beaching activity resumed after monsoon disruptions, while Pakistan remained supported by firm domestic plate prices despite limited vessel availability.
India: Ship recycling sentiment improves as rupee strengthens, EU listing supports outlook
India’s ship recycling market showed slight improvement this week as the rupee strengthened against the US dollar and lower crude oil prices eased cost pressures. Local ship plate prices remained around INR 38,500/t ($404/t), supported by tight plate availability caused by monsoon-related disruptions, although finished steel demand stayed weak.
Buying interest in ships remained cautious, but activity improved with the first vessel sale reported in over a month. A key positive development was the proposal to include two Alang recycling yards on the EU-approved recycling list, which could allow more EU-flagged vessels to be recycled in India.
Bangladesh: Ship recycling activity recovers as beaching resumes
Bangladesh’s ship recycling market improved during the week as the 29 July-1 August high-tide window enabled the first significant beaching activity after monsoon flooding. Improving weather helped clear the backlog of vessels and supported the resumption of yard operations.
Buying interest strengthened as recyclers returned to the market, though vessel prices remained stable due to the gap between acquisition costs and domestic plate prices of around BDT 64,700/t ($523/t). Buyers continued to favour bulk carriers over tankers because of sanctions-related risks, while a weaker USD/BDT and elevated inflation kept financing costs and overall market sentiment under pressure.
Pakistan: Healthy demand but vessel availability remains weak
Pakistan’s ship recycling market remained firm during the week, supported by stable macroeconomic conditions and Gadani plate prices holding at PKR 200,000/t ($719/t), the highest in the Indian subcontinent. Lower crude oil prices eased import cost pressures, while a stable USD/PKR exchange rate and tight monetary policy supported market confidence.
Vessel availability remained extremely limited, with no fresh arrivals at Gadani for a second consecutive week. Although the reopening of the Strait of Hormuz may support vessel movements, Bangladesh’s stronger pricing continued to attract available tonnage.
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