Bangladesh Ship Recycling at Chattogram — 2026-10-26
The Bangladesh government has reclassified the shipbreaking industry from "red" to "orange" category, a move criticized by environmentalists for prioritizing industry demands over worker safety. Meanwhile, global scrap prices remain firm with Bangladesh commanding the highest rates in the sub-continent, driven by acute tonnage shortages. Recent reports highlight that 150 workers have died in the last 12 years, with new data identifying over 100 types of hazards in the yards.
Bangladesh Ship Recycling at Chattogram — 2026-10-26
Top developments
Industry Reclassified from 'Red' to 'Orange' Category
The government has officially decided to downgrade the shipbreaking industry from the "red" (highest pollution) to the "orange" category, complying with demands from industry owners. This regulatory shift is controversial as critics argue it compromises environmental protections and worker safety in Sitakunda, where hazardous waste management remains a critical issue. The decision was reported by Prothom Alo and Amarsokal24, highlighting the tension between economic interests and ecological preservation.
150 Worker Deaths Recorded in 12 Years
A comprehensive study reveals that 150 workers have died in the shipbreaking industry over the past 12 years, with families left without breadwinners. The report identifies 105 specific types of hazards associated with shipbreaking, including risks in iron-cutting and hazardous material removal. This data underscores the persistent lethality of the sector despite ongoing safety discussions.
Bangladesh Commands Premium Scrap Prices
Bangladesh continues to lead the sub-continent in ship recycling activity, commanding the highest prices for vessels. Recent market reports indicate that container vessels are fetching $520 per Light Displacement Tonnage (LDT), tankers at $510/LDT, and bulk carriers at $485/LDT. This premium pricing is driven by an acute global shortage of tonnage available for demolition.
RECYCLECON Updated for HKC Compliance
The global standard contract for sustainable ship recycling, RECYCLECON, has been updated to reflect the entry into force of the Hong Kong Convention (HKC). This update is significant for Bangladesh as it aligns contractual frameworks with the new international legal standards for safe and environmentally sound recycling.
Local view
Local media outlets, including Prothom Alo and Amarsokal24, have focused heavily on the regulatory downgrade of the shipbreaking sector. Prothom Alo editorialized that there should be "no compromise" on safety, criticizing the government's move to reclassify the industry as "orange" despite its status as one of the world's most polluting sectors. The discourse centers on the conflict between the BNP government's stated commitment to sustainable development and the economic pressure to maintain high-volume recycling operations.
Context & numbers
The global ship recycling market remains firm as acute tonnage shortages counter currency headwinds. In Bangladesh, local Heavy Melting Steel (HMS) scrap prices have ticked up to $390 per tonne, with shredded scrap reaching $400. These prices are higher than those in Turkey ($375/tonne) and India ($385/tonne), reinforcing Bangladesh's position as the most lucrative market for recyclers in the region.
On the radar
- EU Waste Regulations: The European Union's new draft waste rules may exclude metal waste from authorized destinations in Bangladesh, potentially impacting future steel scrap imports and supply chains.
- Circular Economy Frameworks: A new academic framework published in Circular Economy and Sustainability discusses the paradox of Bangladesh processing over 45% of global demolition volume while inflicting unpriced harm on coastal communities, suggesting new governance models for HKC compliance.
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