- India grapples with inflow of cheap, sanctioned vessels
- Cheap Iranian steel imports weigh on Pakistani market
South Asian ship recycling markets remained cautious this week, with India showing stability, Pakistan facing pressure from cheap imports, and Bangladesh witnessing selective buying amid weak sentiment and economic uncertainty.
Weekly updates
India: Influx of cheap, sanctioned vessels prompt sustainability concerns
India remained the lowest-priced ship recycling destination in the subcontinent, offering relative stability for buyers aligned with current market conditions. However, activity in Alang stayed muted, with limited recycling volumes ensuring smoother but slower vessel deliveries.
The market continued to grapple with a two-tier structure, driven by the inflow of cheap, sanctioned vessels — including OFAC and EU/UK-listed tonnage — sold well below market levels. This has distorted price expectations, with India remaining the only destination in the subcontinent accepting such “dark” ships, raising longer-term sustainability concerns.
Pakistan: Market struggles despite leading subcontinental prices
Pakistan continues to lead subcontinental pricing, with levels about $230/t higher than India for domestic steel plates. However, the influx of cheap Iranian steel has eroded local margins, and recyclers are struggling to capitalise on their pricing edge.
Despite holding the top spot in pricing for much of the year, no yards have secured HKC certification, resulting in procedural delays and uncertainty. A weaker PKR against USD and restricted vessel arrivals have further weighed on market momentum, keeping Pakistan’s pricing lead largely symbolic.
Bangladesh: Recyclers make selective purchases amid weak sentiment
Selective buying by a few active recyclers in Chattogram brought slight improvement, as they sought to maintain yard activity and meet letter of credit (LC) obligations. Yet, overall market sentiment remained subdued, with steel prices down by $3/t w-o-w to $530/t.
Political uncertainty ahead of the 2026 elections and rising inflation clouded the outlook, though progress continued, with 21 HKC-certified yards boosting the country’s compliant recycling capacity.
Tonnage received last week
Gadani Port recorded 8,522 LDT this week, compared with 32,928 LDT in the previous week.
Alang Port received 85,759 LDT, compared with 60,623 LDT in the previous week.
Chattogram Port received 10,933LDT, compared with 21,592 LDT in the previous week.
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