South Asia: Ship recycling activity flourishes in Alang

• India’s LNG units continue attracting strong interest
• Compliance rules limit smaller vessel imports in Gadani, Chattogram

South Asia’s ship-breaking markets showed mixed trends, with Alang maintaining steady arrivals, Gadani struggling under certification hurdles, and Chattogram seeing weaker demand as recyclers shifted focus to larger units amid stagnant steel prices.

Alang stays active despite currency weakness, sanctions 

Alang remained the busiest ship recycling hub in the subcontinent, supported by steady arrivals including a few sanctioned vessels that other regions avoided. Despite scrutiny from the US over sanctioned ship purchases and ongoing trade frictions, India’s recycling sector has maintained momentum, with nearly 84,000 LDT reported at anchorage.

While steel plate prices remained flat at $448/t, strong Alang demand, HKC capacity, and focus on larger LNG units outperformed rivals.

Gadani ports remain empty amid DASR hurdles, HKC delays

Market continues to face empty port reports, with recyclers avoiding smaller LDT units due to the cumbersome DASR certification process. The absence of HKC-certified yards further complicates imports, leaving Gadani recyclers waiting for larger vessels, though most LNGs and non-ferrous tonnage remain India-focused, as Pakistan has banned LNGs since 2007.

Yard upgrades for HKC compliance continue, while fundamentals support the market. PKR firmed against USD, steel plates stay high at $619-623/t, potentially boosting Pakistan’s recycling prospects by year-end.

Chattogram demand fades as recyclers avoid small LDT units

The market has slowed since September, with smaller LDT vessels left untouched as strict HKC compliance makes them unattractive. Recyclers are instead focusing on larger units, while LNG have drawn selective interest. Weak domestic demand pressures recycled steel, with limited movement amid slow infrastructure spending; local plate prices steady at $519/t.
Tonnage received last week

Gadani Port received no vessels, compared to empty vessels in the previous week.

Alang Port received 83,952 LDT, compared with 155,482 LDT in the previous week.

Chattogram Port received 44,802 LDT compared with 37,750 in the previous week.