- India remains steady but pressured by tariffs, falling rupee
- Pakistani buyers eye limited tonnage amid steady fundamentals
South Asia’s ship-breaking markets showed mixed trends this week, with Bangladesh largely quiet despite a slight boost in arrivals, India facing tariff and currency pressures, and Pakistan leading in pricing but contending with currency weakness and infrastructure challenges.
India’s recycling sector steady but faces rising global headwinds
India’s ship-recycling market remained steady but faced pressure after the US imposed sanctions on Russia-linked trade and 50% tariffs on Indian exports from 1 August, raising uncertainty for businesses and recyclers.
Steel plate prices stayed flat, the rupee weakened, and Alang received six vessels totalling 57,000 light displacement tonnes (LDT), though delivery delays and regional competition remain concerns.
LNG arrivals masked a slow summer, but India’s Hong Kong Convention (HKC) edge may shrink as rivals advance, with the market awaiting tariff and political clarity.
According to a market participant, “The market is currently stable, though future movements remain uncertain, as new ships are expected to arrive soon. Traders are watching closely to see how this additional supply might affect prices.”
Eager Pakistani buyers eye limited tonnage amid steady fundamentals
Pakistani recyclers have been quick to bid on the small number of vessels testing the market, with some older ships from the 1990s likely to reach subcontinental yards soon. They remain the most eager buyers but still face the challenge of upgrading Gadani’s facilities to match competing markets.
Provisional DASR certificates aided steady inflows, including a 9,000 LDT woodchip carrier, with steel plate prices stable at $615/t. Pakistan led in terms of regional pricing, though PKR weakness clouds the outlook.
Chattogram market remains quiet but signs of revival emerge
Bangladesh’s Chattogram ship recycling market has stayed quiet since July, weighed down by weak fundamentals, stalled infrastructure projects, and political instability after the June elections were cancelled. The downturn that began in June 2024 continues to limit activity. A small boost came as 4 vessels, totalling over 30,000 LDT, arrived recently, with HKC-certified yards returning to the bidding tables.
Tonnage received last week
- Gadani Port received 11,486 LDT compared to 10,689 LDT in the previous week.
- Alang Port received 56,778 LDT, compared with 42,797 LDT in the previous week.
- Chattogram Port received 30,225 LDT, compared with 13,606 LDT in the previous week.
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