- Alang stays busiest hub in Sep, with steady arrivals
- Bangladesh remains subdued as HKC delays persist
South Asia’s ship-breaking market was subdued last week, with Alang, Gadani, and Chattogram seeing limited activity. Falling steel prices, currency volatility, delays in Hong Kong Convention (HKC) compliance, and economic-political uncertainties weighed on buyers and tonnage.
Meanwhile, South Asia’s ship-breaking market saw higher tonnage recycled in September, with India leading activity, while Pakistan saw no arrivals and Bangladesh faced a continued slowdown.
Ship-breaking tonnage recycled in Sep’25
Across all three hubs, the total ship-recycling tonnage processed in September 2025 stood at 206,680 light displacement tonnes (LDT), increasing by 12% m-o-m. Alang witnessed the most activity by a huge margin.
India: India’s ship-breaking sector processed 1,69,687 LDT in September, up 34% from August. Alang received 14 vessels for demolition, three more than in the previous month. Alang stayed South Asia’s busiest yard, supported by HKC compliance and tanker arrivals, despite falling steel prices.
Pakistan: Pakistan saw no vessel arrivals in September, down sharply from 14,057 LDT in August. Gadani stayed mostly inactive, with few vessels sold late due to limited HKC progress, DASR, high steel prices, and weak PKR.
Bangladesh: Bangladeshi recyclers processed 36,993 LDT in September, down 16% from 43,830 LDT in August. Only two ships were recycled, as stagnant steel prices, rising inventories, and competition from India and Pakistan continued to pressure margins.
Weekly updates
Alang yard sees increased vessel arrivals
Alang witnessed over 10 vessels totalling 120,000 LDT arriving, a surge from the previous week. However, weak fundamentals and rupee volatility kept offers unsustainable, leaving India the lowest-priced market, even with strong HKC compliance attracting tonnage.
Notably, India’s ship recycling prices have dropped to the lowest globally, as local steel prices have plunged by over $34/LDT in the past three weeks, now at $390/t from $425/t in late September, eroding ship recyclers’ margins.
Gadani activity minimal, few vessels sold
The Pakistani ship-breaking market remains stagnant, with no HKC-accredited yards. Limited DASR approvals allowed for few deliveries, while conflicts, inspection delays, and economic uncertainty keep buyers cautious. Weak demand, scarce arrivals, PKR depreciation, and rising tariffs continued to suppress activity and steel prices in Gadani.
Bangladesh market remains dormant
Bangladesh’s ship recycling market stayed inactive due to HKC delays, political instability, and weak economic conditions. However, activity showed signs of a slow revival, as attractive Capesize deals drew buyers, though currency weakness and flat steel prices kept sentiment cautious.
Tonnage received last week
Gadani Port recorded 1,444 LDT this week, unchanged from the previous week.
Alang Port received 119,924 LDT, compared with 43,020 LDT in the previous week.
Chattogram Port received 21,634 LDT, compared with 7,809 LDT in the previous week.
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