- Alang faces currency, tariff headwinds despite strong arrivals
- Gadani recyclers cautiously optimistic despite HKC hurdles
South Asia’s ship-breaking markets showed mixed activity last week, with Alang seeing strong arrivals, Chattogram limited movement, and Gadani remaining quiet amid regulatory and currency pressures.
Alang sees large arrivals despite currency, tariff pressures
Alang received over 155,000 light displacement tonnes (LDT) of recycling tonnage this week, including two 33,000-LDT LNG carriers and smaller tankers. Activity rose sharply, but high tariffs and a weakening rupee tempered enthusiasm. Steel plate prices stabilised at $448/t after weeks of fluctuation.
Despite strong macro indicators, Alang remained sensitive to rupee depreciation, with LNG arrivals possibly diverted to Pakistan amid currency weakness.
According to a market participant, “The Alang ship recycling market is witnessing weak sentiment and instability, with participants highlighting the rising US dollar as well as pressure on both the rupee and domestic steel prices. Although deals for many ships were concluded at Alang last month, the market has been in free fall over the past few days.”
Gadani struggles amid regulatory, currency pressures
Pakistani recyclers, despite Gadani’s top ranking in steel pricing, have largely missed out on tonnage recently diverted to India and Bangladesh. Limited DASR approvals, HKC hurdles, weak competitiveness as regards non-ferrous metals recovery, and high steel plate prices above $625/t along with a weaker rupee (PKR 284/USD), have kept port activity subdued, resulting in consecutive empty reports.
However, some local recyclers remain cautiously optimistic, noting workable sentiment in the market with reported levels at:
- Tankers – $440/LDT
- Containers – $420/LDT
Chattogram faces low arrivals amid rising inventory
The Chattogram market has remained subdued since June 2025 due to administrative delays, slow HKC approvals, and weak demand. Chattogram’s prospects appear dim, as local mills favour cheaper imported steel. Only a near-30,000-LDT LNG carrier arrived this week, while rising inventories challenged recyclers trying to sell at viable prices. Steel prices held at $520/t, but local recyclers struggled, as most Far East vessels were diverted to higher-paying Pakistan.
Tonnage received last week
Gadani Port received no vessels, compared to 2,261 LDT in the previous week.
Alang Port received 155,482 LDT, compared with 70,718 LDT in the previous week.
Chattogram Port received 37,750 LDT, compared with 29,223 in the previous week.
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