- Currency weakness weighs on regional sentiment
- Small LDT ships face resistance across subcontinent
South Asian ship recycling markets revealed a mixed scenario, with volatile prices in Alang, selective but firm demand for large LDT vessels in Chattogram ahead of elections in that country, and limited activity at Gadani despite stable offers and gradual HKC certification progress.
Alang: Volatility clouds pricing outlook
India’s ship recycling market saw sharp volatility, with steel plate prices jumping nearly $30/LDT before losing some of those rapid gains the following week. Plate prices rebounded $11/t to $410/t after a prior $24/t fall, while the rupee weakened over 0.55% to INR 90.72, adding pricing pressure.
Sentiment received a mild boost from the arrival of three vessels at Alang, including a tanker above 16,000 LDT, though deal viability remains closely watched. Meanwhile, inflation has improved to 1.33% in January from 0.71% in November, suggesting stabilising conditions. With March approaching, recyclers remain open to discussions but are proceeding cautiously amid lingering uncertainty.
Chattogram: Buyers remain active
Despite recent deliveries keeping Chattogram well supplied, Bangladeshi recyclers are actively bidding for tonnage, particularly large LDT vessels such as LNG carriers, tankers, and capes. Strong pricing appetite has again pushed Bangladesh to the top of regional rankings, even as small LDT units face clear resistance and are increasingly diverted westward.
This renewed interest comes amid challenging fundamentals: inflation rose to 8.49% in December, steel plate prices fell $12/t to around $487/t, and the taka weakened to BDT 122.40/$ amid political unrest and pre-election uncertainty. With elections due on 12 February, buyers remain alert, selectively chasing large vessels before market dynamics potentially shift.
Gadani sentiment firm but arrivals scarce
Pakistan has climbed to second place in regional market rankings on comparatively stable pricing, despite little change in offer levels. However, firmer sentiment has yet to translate into arrivals at Gadani, as limited vessel supply, few HKC-approved yards, and reluctance toward Document for Authorisation of Ship Recycling (DASR) procedures continue to delay deals.
Local fundamentals remain weak, with steel plate prices flat at $600/t and the PKR slipping nearly 0.5% to 280/$, adding pressure. A positive development is Pakistan’s first HKC-approved yard, with more expected soon, though near-term inflows are likely to remain scarce.
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