- Monsoon conditions keep overall trading activity subdued
- Upcoming beaching windows support regional recycling activity
South Asian ship recycling markets showed mixed trends during the week, with India and Bangladesh showing gradual recovery despite monsoon disruptions, while Pakistan saw firm sentiment amid limited vessel availability and tight scrap supply.
Alang: Amis tight plate supply recyclers await tide window
India’s ship recycling market remained steady during the week as limited vessel arrivals and monsoon-related cutting activity kept overall trading subdued. Recyclers continued selective buying, with attention shifting to the upcoming 27 July-4 August tide window for improved beaching activity. Local plate prices at Alang firmed to around INR 38,500/t ($402/t) due to tighter supply, although downstream steel demand remained weak.
Market participants also noted that stricter compliance checks in Bangladesh have strengthened Alang’s position as a preferred destination for compliant vessels. Meanwhile, the rupee remained under pressure during the week, although the central bank’s intervention helped limit excessive currency volatility.
Chattogram: Floodwaters recede as recyclers await fresh beaching opportunities
Bangladesh’s ship recycling market moved toward recovery during the week as floodwaters receded and commercial activity gradually resumed. Improved road connectivity, normalised Chattogram port operations, and the withdrawal of a planned transport strike supported smoother cargo movement, while steel yards reopened and domestic trading picked up.
Market participants are focused on the upcoming beaching windows (29 July-1 August and 12-15 August), which are expected to improve vessel arrivals. However, buying remained cautious due to stricter compliance checks following recent sanctions, although stable exchange rates continued to support market sentiment.
Gadani: Market sentiment improves despite geopolitical risks
Pakistan’s ship recycling market remained firm during the week as limited vessel availability and persistent scrap shortages continued to support buying interest despite ongoing geopolitical risks in the Red Sea and Strait of Hormuz. Market participants said recyclers maintained firm offers amid tight supply, while overall activity remained selective.
Domestic steel plate prices strengthened to around PKR 200,000/t ($720/t) by the end of the week, providing additional support to recyclers’ pricing. Market participants expect construction activity to improve after the monsoon season, supported by recent government housing incentives, which could strengthen domestic steel demand. Meanwhile, Pakistan continued to remain competitively priced against India for ship recycling, although Bangladesh remained out of reach due to stronger pricing.
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