- Alang stays active despite rupee, steel market pressures
- Gadani, Chattogram yards witness limited vessel arrivals
South Asia’s ship-breaking markets showed subdued activity last week, with Alang leading despite rupee pressure. However, Gadani and Chattogram faced limited vessel supply, currency volatility, and cautious buyers. Overall, the tonnage recycled fell w-o-w across all three hubs.
Alang faces pressure due to rupee depreciation
Alang’s ship recycling market remained under pressure amid a sharply depreciating Indian rupee. Sliding steel plate prices, down $6/t w-o-w to $402/t, also weakened market sentiment and negotiations.
Despite pressure, Alang remained the most active subcontinent recycling hub, with over 100 HKC-approved yards operational. Competitors continued upgrading infrastructure, while supply remained limited, preventing buyers from fully leveraging their HKC status.
With Bangladesh and Pakistan subdued, Alang is likely to remain the preferred recycling destination in the coming weeks.
Gadani ship recycling faces limited large LDT arrivals
The Gadani market remained subdued despite handymax bulkers secured. Large LDT units such as Capes and Panamax have been avoiding Pakistani yards, often going to India, even though Gadani offers the region’s highest prices.
Yard upgrades continue in Pakistan, but full HKC approval is still pending. Small LDT vessels faced pricing pressure amid delayed approvals, costly financing, and currency volatility, limiting market activity.
Local steel plate prices stayed steady at around $620/t, above Bangladesh, but the PKR weakened. October is expected to remain tight, with limited tonnage and subdued market activity across the region.
Chattogram sees limited vessel supply, minimal port operations
Bangladesh’s ship recycling market remained slow, with buyers cautious amid limited vessel supply and past HKC-compliant yard investments. Only a few vessels were available, while port activity stayed minimal, keeping overall market sentiment weak.
Domestic steel prices held firm at around $520/t, but currency volatility and regional competition added pressure. Recovery is expected to be gradual, with HKC-approved yards likely benefiting as ageing fleets come for recycling.
Tonnage received last week
Gadani Port received 1,444 LDT, compared to 2,894 LDT in the previous week.
Alang Port received 43,020 LDT, compared with 89,540 LDT in the previous week.
Chattogram Port received 7,809 LDT, compared with 14,861 LDT in the previous week.
Leave a Reply