- Vessel supply showing signs of improvement in Alang
- Pakistan yards mostly lack HKC compliance, risk losing tonnage
South Asia’s ship-breaking markets faced mixed trends, with India led by Alang dominating due to strong demand and sanctioned vessel recycling. Meanwhile, Pakistan risks losing tonnage amid slow HKC compliance, and Bangladesh faces delays and political uncertainty slowing its market.
Alang sanctioned vessels enter recycling pipeline
Alang buyers have remained active, securing vessels at prevailing rates and capitalising on the slowdown in Bangladesh. Notably, two large MOSS-type LNG carriers-HYUNDAI AQUAPIA (34,066 LDT) and HYUNDAI TECHNOPIA (34,046 LDT)-were sold en bloc, with deliveries from Korea and Batam. Given their high specifications and green credentials, these vessels are expected to be recycled in India, as Bangladesh continues to face delays in ship clearances and limited yard availability.
However, a sharp $11/t decline in domestic steel plate prices has kept offer levels in Alang under pressure.
According to a market participant, “Market sentiment remains subdued, but vessel supply is showing signs of improvement. Four large LNG carriers were reportedly sold for Alang this week, along with three 20,000 LDT tankers, including some UNSC-sanctioned units. Additionally, other OFAC-sanctioned vessels are also believed to have been confirmed for recycling. Tonnage is gradually returning to the market.”
Pakistan’s growing urgency ahead of HKC deadline
Pakistan’s ship recycling market is showing urgency with improved demand and pricing as the 26 June HKC deadline nears. However, most yards remain far from meeting HKC standards, leaving the country sidelined from major tonnage offers unless upgrades accelerate fast.
Despite a temporary steel plate price rise of $4/t and minor PKR recovery, underlying fundamentals remained shaky. Persistent political tensions and a weakening currency continued to weigh on sentiment.
On the macro front, the IMF’s support and government push for easier financing may help recyclers and yard owners. But without rapid HKC progress, Pakistan risks missing out on key tonnage in both the short and long term.
Chattogram vessel backlogs, delays due to NoC issues
Bangladesh’s ship recycling market remained under pressure as the Taka fell and steel plate prices dropped $21/t to $475/t. Nevertheless, recyclers are still offering on tonnage, backed by stable margins and recent approvals of nine HKC-compliant yards.
However, delays in NoC issuance and ongoing inspections at over 20 yards have caused vessel backlogs and slowed fresh buying. New regulatory requirements are adding to clearance delays, impacting deliveries.
With most active yards near full, limited buyers, monsoon rains, and political uncertainty ahead of the 30 June elections, Bangladesh’s pace has cooled, shifting market focus to India for now.
Last week, Gadani Port received no new vessel, a trend continuing for more than one month.
Alang Port received 12,206 light displacement tonnage (LDT) last week, down from 32,667 LDT in the previous week.
Chattogram Port received 53,614 LDT compared with 66,753 LDT in the previous week.
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