- Gadani sees slow progress
- Bangladesh maintains lead
South Asia’s ship-breaking markets saw mixed trends this week. India’s Alang gained in strength, driven by rising steel prices and pre-monsoon demand, despite concerns over OFAC-listed vessels. Pakistan’s Gadani saw limited activity as local prices lagged, while Bangladesh remained the top destination, with recyclers racing to meet yard upgrade deadlines before Ramadan. Vessel arrivals varied across markets.
Alang gains momentum
India’s ship recycling market gained in strength, overtaking Pakistan as the second-largest destination. The Rupee appreciated, and steel prices rose by $10/t, boosting competitiveness. However, concerns persisted over OFAC-listed vessels arriving in Alang amid US investigations. With HKC enforcement approaching, stricter compliance rules will reshape the industry, while rising vessel arrivals will keep Alang active.
A market participant said, ” Ship-breaking prices in Alang rose by $10/t, driven by higher domestic steel prices and speculation on duty changes. Pre-monsoon demand added momentum, but no recent sales occurred due to vessel shortages. When deals happen, prices are expected to be at least $15/LDT higher than previous levels.“
Another source highlighted, “No vessels available for recycling. However, plate and scrap prices continue to improve, supporting market sentiment. Due to the lack of supply, ship prices remain uncertain, as there are no active offers to gauge current levels.”
Alang Port received 7,578 light displacement tonnage (LDT) last week, down significantly from 14,856 LDT in the previous week.
Pakistan’s Gadani gains momentum
Pakistan’s ship recycling market saw slight activity, with a second sub-9,000 LDT bulker arriving at Gadani, but deals remained limited as local prices lagged behind India and Bangladesh.
Steel plate prices fell another $3-4/t, with the PKR hitting a record-low against USD. With upcoming holidays and rising Indian offers, Gadani recyclers are expected to remain inactive.
Limited LC issuances and no progress on HKC upgrades put Pakistan at risk of its slowest year in a decade, falling further behind regional competitors.
Last week, Gadani Port received 14,126 LDT, an improvement compared to 5,219 LDT seen in the previous week.
Bangladesh holds top spot
The OFAC-listed VLCCs (Very Large Crude Carriers), ARTEMIS III and ITAUGUA, remain stranded outside Chattogram as local banks and authorities denied entry due to US sanctions on Iran-linked assets. Meanwhile, the inner anchorage remained active, with over 103,000 LDT from seven vessels either awaiting delivery or already sold, despite growing political uncertainty.
With the upcoming Ramadan break, business activity will pause; steel prices remain stagnant at $529/t, and the Taka has weakened against the dollar. Recyclers face a 31 March deadline for yard upgrades or risk suspension post-Ramadan. As price indications rise by $10/LDT, some deals may still be finalised before the holiday.
Last week, Chattogram Port received 103,617 LDT, down from 71,670 LDT in the previous week.
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