- India: Cautious market, OFAC vessels pressure prices
- Pakistan: Iranian scrap inflow dampens Gadani sentiment
South Asia’s ship-breaking market was subdued this week, with weak sentiment across India, Pakistan, and Bangladesh amid low tonnage supply, price pressure, sanctions, and ongoing economic and political uncertainties.
Weekly updates
Alang: Sanction-linked vessels deepen post-festival slowdown
India’s ship recycling market remains subdued post-Diwali, with over a hundred Alang yards idle and minimal activity. Despite full HKC certification, recyclers face a severe tonnage shortage as prices drop from $600/t to below $400/t, limiting buyer’s ability to benefit from compliance.
Dark vessel inflows created a two-tiered market, depressing clean ship prices. Despite the Rupee firming and plate prices edging up to $389/t, weak steel demand keeps India’s recycling market unstable yet reliable.
According to market participants, India’s ship recycling market has turned increasingly cautious following the appearance of OFAC-linked vessels.
- OFAC-linked vessel offers: around USD 350/LDT
- Maximum workable levels: up to USD 380/LDT
Buyers noted that banks are unwilling to finance such vessels due to sanction risks, making transactions difficult to conclude. This has dampened sentiment and added downward pressure to prices this week.
Pakistan: Larger dry units favored amid fading local appetite
The Gadani ship recycling market has slipped again as cheap Iranian scrap steel dragged down offers and sentiment. Though still above $400/LDT, buyers remain cautious, focusing on larger dry vessels amid DASR certification delays and ongoing HKC yard upgrades that make smaller ships less attractive.
Inflation nearly doubled in September amid sanctions and unrest. While plate prices held at $614/t. Bangladesh’s reopening has weakened Pakistan’s competitiveness.
A market participant highlighted a deal involving a 6,900 LDT vessel sold at USD 412.5/LDT; however, the origin of the vessel has not been specified yet.
Bangladesh: Large-vessel deals surface as smaller units lose appeal
The Chattogram ship recycling market remains volatile, with buying focused on large-tonnage vessels like LNG carriers and capesize bulkers. Smaller LDT units face weak demand as rising inflation, new export tariffs, and a weaker Taka weigh on sentiment, while local steel plate prices slipped by $3/t.
Political uncertainty ahead of the February 2026 elections has further slowed activity. Only a few deals were reported, including two LNG carriers (PUTERI NILAM and PUTERI DELIMA) and Waruna’s MONICA P sold at $380/LDT.
Tonnage received last week
Gadani Port recorded 32,928 LDT this week, stable from the previous week.
Alang Port received 60,623 LDT, compared with 121,896 LDT in the previous week.
Chattogram Port received 21,592 LDT, compared with 12,618 LDT in the previous week.
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