- Competitive pricing shifts vessels away from India
- Pakistan hopes approvals attract owners soon
South Asia’s ship-recycling market remained subdued in the week ending 28 November, with India receiving the highest tonnage of 81,234 tonnes, and while Pakistan recorded no new arrivals. Prices remained unchanged across all regions w-o-w, with Bangladesh maintaining the stronges CFR levels at $440/t. High competition and weak fundamentals continue to restrict activity despite progress in compliance with Hong Kong Convention (HKC) standards.
India: ship recycling sector weakens as competitors gain ground
India’s ship-recycling market remained under pressure as Bangladesh and Pakistan continue to gain ground by securing more HKC-compliant tonnage. Even high-value LNG vessels, once regular candidates for Alang, are shifting to Bangladesh due to more attractive pricing.
Although India continues to attract lower-grade tankers for offloading, this has done little to support overall activity.
Weak fundamentals further weigh on sentiment, with the rupee slipping to INR 89/$ last week and local steel plate prices falling to $ 390/t. Competitive foreign bids and shrinking margins continue to squeeze the domestic recycling sector.
Bangladesh: Yard modernisation progresses despite weak fundamentals
Bangladesh has made rapid progress in upgrading ship-recycling yards to HKC standards, reaching 21 certified facilities with another nearing completion. Yet recyclers remain uncertain whether heavy investments were worthwhile amid a prolonged four-year tonnage drought, falling steel prices, and volatile inflation that dragged yard pricing from $ 600/t to around $ 400/t within last six months.
Local steel plate prices continued to fall, dropping 2% to $ 506/t, while political instability ahead of the elections in February 2026 keeping market sentiment fragile.
Although pricing above $ 400/LDT is still achievable for large vessels in good condition, smaller units face weaker interest, making the coming quarter crucial for sellers.
Pakistan: Major HKC milestone, but market remains subdued
Pakistan achieved a significant breakthrough as Prime Green Recyclers became the country’s first HKC-approved yard at the end of November.
More yard approvals are expected in the next 3-4 months, raising hopes that shipowners may soon test the upgraded facilities.
However, market activity remains quiet. Local steel plate prices fell to $579/t, and the rupee saw only minor strengthening. Despite competitive fundamentals compared to India, Gadani’s anchorage stayed empty as most tonnage flowed to Bangladesh and India, keeping December prospects muted.
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