- Limited vessel arrivals restricted beaching activity
- Geopolitical uncertainty delayed vessel recycling decisions
Ship recycling markets across the Indian subcontinent remained subdued in the week ended 21 July as monsoon disruptions, limited vessel availability, and geopolitical uncertainty weighed on activity. India and Bangladesh reported weak beaching activity, while Pakistan’s market remained steady with cautious buying supported by regulatory duty relief.
Alang: Weak vessel supply, monsoon disruptions restrict recycling activity
India’s ship recycling market remained subdued during the week as monsoon conditions and limited vessel availability constrained activity at Alang. The 11-20 July tide window ended with minimal fresh beaching activity, while the Gulf vessel queue remained suspended.
Market participants reported limited tonnage availability, while firm local steel plate prices provided modest support to recyclers’ margins. Domestic plate prices increased to around INR 38,000/t ($395/t), partially offsetting the impact of a weaker rupee.
Meanwhile, USD/INR briefly weakened, while June inflation accelerated to 4.38%, driven by higher transport and food costs, adding to cost pressures across the domestic steel and ship recycling sectors.
Chattogram: Severe floods disrupt recycling activity; beaching remains limited
Bangladesh’s ship recycling market remained subdued during the week as severe flooding and monsoon rains disrupted yard operations and delayed vessel arrivals. Beaching activity at Chattogram was nearly at a standstill, with cash-buyer enquiries remaining limited after the 14-17 July tide window.
Yards awaited the next favourable beaching window on 29 July as Gulf-origin vessel arrivals were delayed by shipping disruptions and firm freight rates. Market participants viewed the slowdown as temporary, with supply deferred rather than cancelled.
Meanwhile, the USD/BDT remained stable, supported by IMF funding, while domestic steel trading stayed muted as mills and recyclers refrained from issuing fresh price indications due to weak demand and monsoon disruptions.
Gadani: Regulatory duty relief supports sentiment; geopolitical risks cloud outlook
Pakistan’s ship recycling market remained steady during the week as limited vessel arrivals and cautious buying kept trading activity at Gadani subdued. Plate prices remained unchanged at PKR 195,000/t ($701/t) for a second consecutive week.
The 1 July Regulatory Duty relief continued to support sentiment, while renewed Gulf tensions and higher war-risk premiums increased uncertainty over future vessel supply.
Despite these developments, the USD/PKR exchange rate remained stable, reflecting resilient market fundamentals. Participants expect activity to remain measured until vessel availability improves and geopolitical uncertainty eases.
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