- Alang quiet amid minimal arrivals
- Remittance inflows keep Bangladesh active
South Asia’s ship-breaking markets saw a mixed week, with Alang holding steady despite limited arrivals, Gadani leading in tonnage amid cost concerns, and Chattogram slowing down due to holidays and HKC uncertainty. While pricing remained mostly stable, recyclers across the region are facing growing pressure from cheaper Chinese steel and regulatory deadlines.
Alang market sees limited arrivals
Alang’s ship-breaking market remains stable, despite a sharp decline in vessel arrivals. The only ship at the waterfront is a week-old vessel awaiting delivery. The Indian Rupee remains volatile, losing 80 basis points against the US Dollar. Local steel plate prices dropped by $6/t, while Chinese steel prices fell, raising concerns about market stability.
With fears of cheaper Chinese steel flooding the market, local recyclers face pressure to lower prices, despite efforts to prevent undercutting.
Meanwhile, Alang recyclers are well-prepared for the Hong Kong Convention’s upcoming implementation, positioning them to remain competitive as Q3 is expected to be one of the busiest periods for the market.
Current offers are as follows:
Tanker: $460-465/LDT
Container: $470-475/LDT
A market participant commented, “There is currently no fresh activity in the Indian ship recycling market. With no new arrivals, prices are holding steady for now. Given the lack of movement, these levels appear to be in line with the prevailing market conditions.”
Alang Port received 1,178 light displacement tonnage (LDT) last week, down from 5,046 LDT in the previous week.
Gadani leads in tonnage but faces challenges
Pakistan’s ship recycling market is gaining traction, but vessel supply remains limited, with most ships favouring Bangladesh. Only a few smaller vessels reached Gadani, while demand for larger units remains strong. Competitive pricing helped Pakistan lead subcontinent tonnage this week.
Steel plate prices have stabilised at $624/t after March’s sharp drop, while the Pakistani Rupee weakened.
The US-China tariff war raises concerns over cheaper Chinese steel hitting local markets. With HKC upgrades still pending, Gadani yards may face import bans post-26 June.
According to a market participant, “Ship breakers remain cautious due to cost pressures and limited competitiveness of their main products-refillable and melting scrap-with such high import costs, local yards are struggling to compete unless they are willing to offer credit terms to attract buyers.”
Current offers are as follows:
Rollable scrap import cost: ~PKR 160,000-164,000/t
Last week, Gadani Port received 13,533 LDT, declining from 19,665 LDT in the previous week.
Chattogram awaits HKC deadline clarity
The ship recycling market remained steady, with steel plate prices flat at $529/t and the Taka slightly strengthening against the Dollar.
Chattogram’s ship recycling yards await official word on HKC deadline extensions, as the Department of Environment lacks authority. The Ministry of Industries, transferring responsibilities to the new Ship Recycling Board, is expected to issue decisions after Eid. Several vessels are currently awaiting clearance.
Religious holidays slowed activity in Bangladesh, but strong remittances boosted reserves above $21 billion, helping recyclers stay funded despite just two small vessels arriving in Chattogram.
Last week, Chattogram Port received 2,933 LDT, down from 60,529 LDT in the previous week.
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