- Approaching monsoon restricts vessel supply across South Asia
- Pakistan’s plate prices highest, Indian offers most competitive
South Asian ship recycling markets remained largely stable w-o-w as of 12 May despite currency volatility and geopolitical uncertainty. However, limited vessel availability ahead of the monsoon season continued to restrict market activity across the region.
Overall, India remained the most competitively priced destination, Bangladesh was supported by smoother letter of credit (LC) operations, while Pakistan maintained the highest plate prices in the sub-continent.
India: Alang prices remain competitive despite currency fluctuations
India’s ship recycling market remained stable despite sharp rupee volatility, with USD/INR hitting a record low before recovering later amid easing crude oil prices. However, market participants viewed the currency recovery as temporary amid ongoing geopolitical uncertainty.
Local steel plate prices at Alang remained stable at INR 40,100-41,000/t ($422-436/t). India offered the most competitive plate prices in the sub-continent, supported by strong compliance standards and adequate yard capacity.
However, vessel availability remained limited ahead of the monsoon season, while the PM’s appeal to use less fuel triggered panic in the market.
Bangladesh: Stable market amid firm currency, smoother LC flow
Bangladesh’s ship recycling market remained stable, supported by a steady USD/BDT exchange rate and firm domestic steel plate prices at around BDT 69,100-71,000/t ($562-578/t). Stable reserves and disciplined central bank intervention continued to support sentiment.
LC flow improved, with faster approval and settlement cycles easing earlier bottlenecks in Chattogram. Compliance checks remained strict, although due diligence handling became more streamlined.
Meanwhile, firm vessel demand ahead of the pre-monsoon period and limited vessel availability continued to support market conditions.
Pakistan: Stable currency, firm plate prices support Gadani market
Pakistan’s ship recycling market remained firm despite rising inflation and higher energy import costs. Pakistan’s central bank raised its policy rate to 11.5%, marking the first rate hike in three years.
Despite this, the USD/PKR rate remained relatively stable, while local steel plate prices at Gadani stayed unchanged at around PKR 190,000/t ($679/t), keeping Pakistan’s prices the highest in the sub-continent.
Pakistan’s proximity to Gulf trade routes continued to support sentiment, although limited vessel availability ahead of the monsoon season restricted overall market activity.
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