- Monsoon disrupts recycling across South Asian yards
- Hormuz tensions delay vessel sale decisions
South Asia ship recycling markets remained subdued on 14 July as monsoon disruptions, cautious buying and Strait of Hormuz tensions limited vessel availability and fresh transactions across India, Bangladesh and Pakistan.
India: Monsoon, geopolitical uncertainty slow recycling activity
India’s ship recycling market remained subdued during the week as the ongoing monsoon continued to restrict beaching activity at Alang, while renewed tensions around the Strait of Hormuz delayed vessel sale decisions and slowed the flow of recycling candidates.
Market participants maintained cautious buying despite more than 110 valid Statements of Compliance remaining available, as owners deferred sales amid uncertainty over Gulf vessel movements. Local steel plate prices improved to INR 37,000/t ($385/t) from INR 36,500/t ($380/t), providing limited support to recyclers.
However, India remained the region’s lowest-priced recycling destination, with a price gap of over $310/LDT compared with Pakistan. Monsoon disruptions and geopolitical uncertainty are expected to keep vessel arrivals and market activity subdued in the near term.
Bangladesh: Flooding disrupts recycling activity across Chattogram yards
Ship recycling activity remained subdued during the week as heavy monsoon rains and flooding disrupted operations at Chattogram yards. Cash buyer interest stayed weak, with recyclers focusing on operational challenges, while no major vessel transactions were reported.
Despite the slowdown, yard capacity and LC availability remained adequate, suggesting demand has been deferred rather than cancelled. Domestic steel prices remained broadly stable at around BDT 66,000/t ($534/t), although trading activity was limited due to weather disruptions. Meanwhile, renewed tensions around the Strait of Hormuz may delay vessel arrivals into South Asia, keeping near-term supply uncertain despite expectations of improved activity once weather conditions normalise.
Pakistan: Geopolitical tensions keep Gadani market cautious
Pakistan’s ship recycling market remained cautious as Strait of Hormuz tensions delayed fresh vessel sales and disrupted shipping. Although Gadani could benefit from future arrivals, near-term vessel availability remained limited.
Yards remained focused on processing existing vessels, including Jenny Lucky and Ladonna, with no significant increase in fresh arrivals. Local steel plate prices held steady at around PKR 195,000/t ($700/t), supporting recyclers. Meanwhile, lower duties on imported steel products may increase competition from prime steel and weigh on demand for recycled material.
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