South Asia: Ship recycling trends diverge as Bangladesh leads, India subdued

• LPG issues disrupt operations and plate stability
  
  
• Limited vessel inflows restrict yard utilisation
  
  

The South Asian ship recycling markets showed mixed trends in the week ended 14 April. India remained cautious amid currency weakness and operational constraints, while Pakistan held steady with stable fundamentals.

In contrast, Bangladesh led the region with strong momentum, supported by higher steel prices and improved financing conditions, though overall activity across markets continued to depend on vessel availability.

INR weakens slightly; supply and energy constraints persist

India's ship recycling market saw cautious sentiment in the Week ended 14 April, as the rupee weakened slightly against the US dollar, reversing part of the previous week's gains. While softer oil prices offered some relief, uncertainty around external factors limited currency stability.

Steel plate prices rose briefly to $436-438/tamid LPG supply disruptions. Despite stable inflation, energy constraints and limited vessel inflows continue to restrict operations, with India remaining competitive but facing supply shortages.

Strong momentum continues in Bangladesh recycling market

Bangladesh's ship recycling market strengthened, supported by a sharp rise in steel plate prices ($578/t) and a stable currency, making it the most competitive and active buyer in the sub-continent.

LC approvals improved significantly post-Eid, easing earlier transaction bottlenecks and supporting deal flow. However, caution persisted due to compliance concerns around sanctioned vessels, slowing the entry of some tonnage.

Inflation eased slightly, providing macro stability and supporting financing conditions. With the monsoon season approaching, urgency to secure vessels is increasing, and market activity will largely depend on available supply rather than demand.

Stable fundamentals support Pakistan's recycling market

Pakistan's ship recycling market remained stable, supported by firm steel plate prices $634-638/tand a steady rupee, keeping Gadani competitively positioned in the sub-continent.

Gadani continued to benefit from proximity to Gulf tonnage amid regional disruptions, supporting steady inflows. The presence of three HKC-compliant yards, with more in progress, is further enhancing Pakistan's appeal as an alternative to India. While inflation edged slightly higher, it remained manageable and had limited impact on yard economics.