- Alang drops to third place as Gadani edges ahead
- Gadani market gains momentum despite tight credit conditions
South Asia’s ship-breaking markets faced mixed fortunes this week. Alang dropped to the third place amid low tonnage supply and buyer inactivity, while Gadani gained ground despite credit constraints. Bangladesh remained steady with consistent arrivals. Recyclers across the region are now shifting focus to HKC yard upgrades ahead of the 26th June compliance deadline.
India: Weak tonnage supply, buyer inactivity
India’s ship recycling market endured a tough February, marked by declining vessel offers due to a dwindling supply of tonnage. This downturn has pushed Alang down to the third place in the subcontinent rankings, with Pakistan’s Gadani quietly overtaking it. Weak participation from local buyers further weighed on market sentiment, despite broader national economic gains, including improved US-India trade relations.
The Indian Rupee recovered after a two-month low, while steel plate prices stabilised with a $2/t rise after four weeks of decline. However, concerns persist over cheaper Chinese steel flooding the market due to new tariffs.
A market participant noted, “The ship recycling market remains completely dormant, with no fresh listings or concluded deals observed at present.”
Another market participant commented, “Bhavnagar has seen no vessels offered for sale since the past month, marking an extended period of inactivity.”
Alang Port received 76,020 LDT this week.
Pakistan: Gadani credit squeeze hinders large vessel deals
Pakistan’s ship recycling market is showing signs of revival as India’s declining prices make Gadani more competitive. However, no new deals have been finalised recently. Now, ranking second in global recycling prices, Gadani is drawing attention from owners and cash buyers, particularly for vessels suited to the WC India/Pakistan region.
Gadani recyclers continue to struggle with securing larger LDT vessels due to tight credit and limited bank financing, despite improving sentiment. Adding to the pressure, steel plate prices dropped another $11/t, marking a $22/t fall in two weeks though still $100/t above Bangladesh levels.
Loan relief and remittances have eased pressure, giving Gadani recyclers a chance to focus on HKC upgrades before the deadline.
Offers: Bulkers at around $440/LDT
According to a market participant, “There are currently no active offers for tankers and the segment lacks momentum.”
Notably, no new tonnage has been reported at Gadani Port since last week.
Bangladesh market downturn allows focus on HKC upgrades
The Chattogram market remained steady throughout February, with nine vessels totaling nearly 100,000 LDT arriving or awaiting delivery this week-primarily from deals finalised in January. These arrivals have supported stable yard operations despite the broader slowdown in available tonnage. Domestic steel plate prices remained flat at $529/t. Additionally, a smaller Chinese-owned bulker, SEA WISE (5,533 LDT), was sold at a reduced rate of $420/LDT, with Gadani as the delivery option.
Despite these headwinds, the current downturn may allow recyclers to focus on yard upgrades ahead of the June HKC compliance deadline, offering short-term employment opportunities and some cushion for the sector in the months ahead.
This week, Chattogram Port received 98,673 LDT, down from 105,088 LDT in the previous week.
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