- Gadani prices remain firm amid tight vessel availability
- Tanker, container vessel demand strengthens in Chattogram
South Asia’s shipbreaking markets showed mixed trends during the week ended 18 August, with Alang remaining subdued despite firmer plate prices. Chattogram gained momentum on strong tanker demand, while Gadani remained firm, supported by tight vessel availability and resilient recycler demand.
Alang remains soft despite firmer plate prices
Alang’s shipbreaking market remained subdued during the week as buying interest weakened despite a recovery in local steel plate prices. Plate prices rose from INR 38,500/t ($402/t) to INR 39,500/t ($413/t), while HMS remained around $375/t. However, the improvement in steel prices failed to translate into stronger vessel demand.
The 9-18 August tide window remained operational, with yard-side logistics and payment conditions gradually improving. However, weak downstream steel demand continued to limit a sustained recovery in shipbreaking activity.
Pine Arrow was confirmed at $445/LDT, while FT Island remained at anchor awaiting entry. The weaker USD/INR offered limited currency support amid rising inflationary pressures.
Chattogram gains momentum as tanker demand surges
Chattogram’s shipbreaking market strengthened during the week as recyclers showed strong interest in tanker and container vessels. The 12-15 August tide window operated as scheduled, while the next major window is set for 28-31 August, indicating that monsoon-related disruptions have eased.
Market sentiment was driven mainly by firm demand for specialised vessels, marking a shift from July when buyers remained cautious on tanker tonnage due to compliance concerns. However, interest in standard bulkers remained subdued.
Local plate prices offered limited support, rising to BDT 64,500/t ($525/t) before easing to BDT 64,000/t ($521/t). Stronger vessel demand, rather than steel prices, supported market sentiment, while a stable USD/BDT rate provided a steady currency backdrop.
Gadani holds firm amid tight vessel availability
Gadani’s shipbreaking market remained stable during the week, supported by strong recycler demand but constrained by limited vessel availability. Recently purchased vessels remained in transit, keeping fresh arrivals scarce and leaving yards awaiting new tonnage.
Local steel plate prices held around PKR 200,000/t ($720/t), among the highest in the subcontinent. Limited Iranian steel imports kept mills dependent on local recyclers for feedstock, while monsoon-related supply disruptions supported prices.
Construction demand is expected to improve post-monsoon, supported by housing subsidies and lower property taxes. Overall, firm plate prices, strong recycler demand and limited vessel availability supported Gadani’s market.
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