South Asia: Ship recycling markets remain resilient despite monsoon slowdown

• Rupee recovery, lower energy costs support sentiment in Alang
• Bangladesh market stays firm amid supportive financing conditions

Ship recycling markets across South Asia remained resilient during the assessment week ended 16 June 2026, with steel plate prices continuing to be firm, supported by stronger regional currencies, easing energy costs, and stable domestic steel prices. While monsoon conditions continued to affect operational activity in key recycling hubs, healthy demand for recyclable tonnage and improving market fundamentals helped maintain positive sentiment across India, Bangladesh, and Pakistan.

Alang: Steel prices soften amid improving currency outlook

India’s ship recycling market remained largely stable during the week, supported by a strengthening rupee, lower energy costs, and improving macroeconomic conditions.

At Alang, domestic steel plate prices softened to around INR 38,000/t ($398/t) from INR 38,500/t ($405/t) earlier, reflecting weaker mill sentiment. Recycling activity remained subdued as monsoon conditions continued to affect operations, with yards working through recently acquired tonnage.

Despite the seasonal slowdown, market sentiment remained positive, supported by lower bunker costs, easing freight premiums, and a strong compliance base among recycling yards.

Chattogram: Demand remains firm even as monsoon slows activity

Bangladesh’s ship recycling market remained firm during the week, supported by stable economic conditions, healthy foreign exchange reserves, and steady demand for recyclable tonnage.

Activity slowed following the Eid holidays as monsoon conditions reduced beaching operations along the Chattogram coast. With limited fresh arrivals, yards focused on processing previously acquired vessels, while financing conditions remained supportive.

Domestic steel plate prices held steady at around BDT 65,000/t ($535/t). Despite the seasonal slowdown, sentiment remained positive, supported by strong plot occupancy, available financing, and Bangladesh’s competitiveness as a leading recycling destination in the region.

Gadani: Firm pricing supported by strong rupee

Pakistan’s ship recycling market remained firm during the week, supported by a strong rupee and resilient domestic steel prices. While annual inflation rose in May, easing monthly inflation and lower energy costs indicated moderating price pressures.

The Pakistani rupee remained stable, aided by softer crude oil prices and improving external account conditions. Domestic steel plate prices held steady at around PKR 195,000/t ($700/t), keeping Gadani among the highest-priced recycling destinations in the region.

Despite easing freight rates and the gradual normalisation of Gulf shipping routes, overall market sentiment remained positive.