The South Asian ship-breaking sector saw a sharp decrease in tonnage received in July 2024. India, Pakistan, and Bangladesh collectively processed 79,486 LDT, marking a 58% decrease from 188,340 LDT in June. On an annual basis, the tonnage declined by 48% compared to 152,449 LDT in the previous year.
India
India reported the highest tonnage at 37,082 LDT in July, though this was a 38% decrease from 59,796 LDT in June. On an annual basis, this figure was down 52% from the 76,757 LDT recorded in July 2023. The Alang ship-breaking yard received two ships for recycling in July. India’s ship recycling market in July 2024 was marked by significant uncertainty, largely due to post-election jitters and anticipation of the financial year 2025 (FY25) Budget. Alang recyclers were cautious, resulting in minimal bidding activity as they awaited potential economic directives from the government. However, the Budget disappointed, offering no specific relief for the ship recycling industry, leading to further declines in local steel plate prices. The Indian rupee remained weak, adding to the challenges. Despite these hurdles, some activity persisted, particularly with the arrival of reefers, though overall tonnage was low.
Pakistan
Pakistan’s tonnage for July was 13,776 LDT, surging by 98% from 6,956 LDT in June. Notably, no tonnage was recycled in July 2023. Approximately five ships were recycled during the month, a 50% decrease compared to June. Despite higher import duties and stagnant local steel prices, Pakistan’s ship recycling market showed resilience in July 2024, maintaining relative stability despite a challenging regional environment. Gadani recyclers remained selective and managed to outperform previous volumes. The slight firming of the Pakistani rupee contributed to market stability. Despite the persistent tonnage drought, Gadani held its ground, particularly as Indian and Bangladeshi markets struggled. However, the lack of new arrivals and ongoing freight activity limited the immediate impact, leaving the market cautiously optimistic.
Bangladesh
In July 2024, Bangladeshi recyclers processed approximately 28,628 LDT, a 76% decrease from 121,588 LDT recycled in June. On an annual basis, the tonnage decreased by 62% compared to 75,692 LDT in July 2023. About nine ships were recycled during the month, marking a 50% decrease compared to 18 ships recycled in June. The ship recycling market in Bangladesh faced a turbulent month, heavily impacted by civil unrest and economic instability. Violent protests, communication blackouts, and severe weather conditions hampered operations in Chattogram. Despite these challenges, the market saw some activity with small-LDT tonnage arrivals, but overall market conditions weakened significantly. Local steel plate prices fell, and the Bangladeshi taka depreciated further, reflecting broader economic difficulties. The market remained subdued, with ongoing uncertainty and instability casting a shadow over the industry’s prospects.
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