After a whirlwind January of negotiations and a busy February and early March marked by extensive deliveries, the ship recycling markets in the Indian subcontinent have entered a period of calm. Recently, there have been alarmingly few deals, with prices dropping below the sought-after USD 450s/LDT. The last significant sale was noted in Bangladesh, which continues to lead the region, though its price levels are beginning to weaken.
India faces stiff competition from Pakistan, which is showing stability and is actively pursuing the limited vessels available for recycling. For several weeks, the number of concluded market units has dwindled, reflecting broader trends in the shipping sector. The Baltic’s Dry Bulk Sea Freight Index has risen to its highest point since November 2024, contributing to a diversion of focus away from ship recycling as freight rates remain firm.
This rising cost of logistics is likely to exacerbate global inflation, especially amid ongoing trade tensions and rising oil prices, which have fluctuated but ultimately closed the week at $67.20 per ton. Domestically, the recycling market is sending mixed signals. The U.S. Dollar’s value varies against different currencies, while steel plate prices have dropped in both India and Pakistan.
In contrast, Chinese plate prices are finally stabilizing, which could eventually benefit subcontinent markets. The market’s future remains uncertain, hinging on the potential for restoration to equilibrium. Currently, the shortage of tonnage gives recyclers in Bangladesh and Pakistan a chance to upgrade their facilities in line with the Hong Kong Convention standards ahead of its enforcement on June 26th.
Most yards in Alang are already HKC accredited. Meanwhile, Turkey’s market continues to quiet down due to the dearth of vessels. The aftermath of Trump’s tariff deadlines and China’s responses will further shape these economies.
Additionally, several large, sanctioned vessels remain unsold, raising questions about the risks some buyers are willing to take for quick profits.