Bangladesh Ship Recycling at Chattogram — 2026-09-02
A fresh fatal accident at a certified shipbreaking yard in Sitakunda has triggered renewed demands for legal action and compensation, highlighting the gap between "green" certification and on-ground safety. While demolition prices for Bangladesh remain competitive, local scrap markets are showing cautious trends amid weak construction demand.
Bangladesh Ship Recycling at Chattogram — 2026-09-02
Top developments
Fatal Gas Leak at Ferdous Steel Yard Prompts Legal Action
In early September 2026, a toxic gas leak during ship dismantling operations at the Ferdous Steel Ship Recycling Yard in Sitakunda, Chattogram, resulted in the deaths of 10 workers. This incident has led to immediate calls from local stakeholders for strict penalties against the yard's owners and compensation for the victims' families. The event underscores the persistent lethal risks in the industry despite recent regulatory pushes.
Protests Demand Accountability for Sitakunda Deaths
Following the fatalities, civil society groups and workers' representatives submitted a memorandum to the Chattogram District Administration demanding impartial investigation and punishment for the negligence at Ferdous Steel. The protests highlight growing frustration with the enforcement of safety protocols, particularly at yards that have received "Green Yard" status. Stakeholders are urging the government to move beyond paper certifications to actual physical safety upgrades.
Bangladesh Targets 100+ Green-Certified Yards Amid Safety Crisis
The government announced plans to expand the number of green-certified ship recycling yards to over 100, with approximately 31 currently certified. This initiative includes proposals for hazardous waste treatment facilities to meet international standards. However, critics argue that expanding certification without robust on-ground enforcement mechanisms may merely legitimize unsafe practices, as evidenced by the recent fatal accidents at already-certified sites.
Local view
Local Bengali media outlets have focused heavily on the human cost of the industry. Click News BD reported on the specific number of casualties (10 workers) and the immediate recommendation for action against the yard owners. Meanwhile, Daily Shamol Bangla covered the public memorandum submitted to the District Administrator, reflecting strong community pressure for justice and better working conditions. The narrative in local press emphasizes that "Green Yard" status has not translated into safer environments for laborers.
Context & numbers
Recent market data indicates that Bangladesh remains a highly competitive destination for ship demolition. According to the latest BEST OASIS report, indicative recycling prices in Bangladesh are assessed at $510 per LDT for containers, $500 for tankers, and $455 for bulkers. These figures are higher than India's ($460/$430/$415) and comparable to or exceeding Pakistan's rates ($490/$480/$470). In terms of scrap steel, HMS (Heavy Melting Steel) prices in Bangladesh are recorded at USD 385 per tonne, with shredded scrap at USD 395 per tonne.
However, downstream demand faces headwinds. Imported containerized scrap prices have seen a slight uptick of $4/t week-on-week, but the market remains cautious due to slow construction activity and weak rebar demand.
On the radar
- Investigation Outcomes: Watch for the official findings from the investigation committees formed after the recent gas leak incidents to see if they recommend permanent closure or fines for Ferdous Steel.
- HKC Compliance Pressure: With the Hong Kong Convention (HKC) having entered into force in June 2025, continued accidents at certified yards may invite stricter international scrutiny or potential listing issues for Bangladesh under EU SRR guidelines if safety metrics do not improve.
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