- Strong vessel competition lifts market sentiment
- Tanker prices remain strong across regional markets
South Asia’s shipbreaking markets strengthened in the week ended 25 August, with vessel prices rising across India, Bangladesh and Pakistan. Firmer domestic steel prices, tighter vessel availability and supportive macroeconomic conditions lifted sentiment, while strong competition for available tonnage continued to support the market.
Alang market gains support from firm steel prices
India’s shipbreaking market received some support as the domestic steel market strengthened during the week. USD/INR eased to 95.77, while July inflation stood at 4.45%, its highest level in 19 months. The currency movement and uncertainty around potential US sanctions on shipping registries continued to add uncertainty to vessel flows.
Domestic plate prices increased to INR 40,500/t ($423/t). The improvement supported recycler margins, although Alang continued to face strong competition from rival markets offering higher prices for standard dry and container vessels.
Activity remained stronger in specialised tonnage. The 5,685 LDT Frio Naruto, 11,552 LDT Cutta and 43,402 LDT FT Island were delivered during the week, with FT Island marking one of the largest candidates seen in the basin in recent months.
Alang therefore remained competitive mainly in complex, green and sanctioned tonnage, while conventional vessel buying remained challenging. EU List discussions and the basin’s strong Statements of Compliance capability continued to support this specialised segment.
Chattogram: Shipbreaking market strengthens as macro stability improves
Bangladesh’s shipbreaking market strengthened during the week, supported by firmer vessel prices and a more stable macroeconomic backdrop. The taka remained close to its recent high, providing some stability for import-dependent buyers.
Chattogram’s anchorage became more active ahead of the 28 Aug-31 Aug tide, with 6,357 LDT Than, 9,520 LDT Param and 1,589 LDT Wantong 498 arriving. LPG tanker Su Shun, which had waited since 1 Aug, was also delivered. Demand for mid-to-large vessels remained firm, although sentiment eased slightly from the recent tanker-buying peak.
Shipbreaking bids rose around $50/LDT w-o-w to $495-500/LDT for dry bulkers and $515-520/LDT for tankers. Tankers remained the strongest segment, particularly small and mid-sized vessels.
Local plate prices held at around BDT 64,000/t ($521/t), while improving reserves, easing inflation and a relatively stable currency provided a supportive backdrop for Bangladesh’s import-dependent shipbreaking market.
Gadani: Shipbreaking prices rise as vessel supply tightens
Pakistan’s Gadani shipbreaking market strengthened sharply during the week, with desk indications rising to $515-520/LDT for dry bulkers and $535-540/LDT for tankers. The move pushed Pakistan to the top of the sub-continent’s market, despite limited vessel availability.
The rise was driven by a shortage of Iranian billets, stronger reliance on scrap feedstock and intense competition for the few available vessels. Recently purchased units remain in transit, leaving buyers competing for a very limited candidate pool.
Local plate prices also increased to around PKR 203,000/t ($732/t), supported by billet shortages and monsoon-related supply constraints. Expectations of stronger post-monsoon construction, housing subsidies and lower property withholding tax continued to support the demand outlook.
Meanwhile, USD/PKR strengthened, providing some support to Gadani’s yards. With no major macroeconomic events expected until September, vessel availability and yard activity remain the key market drivers.
Leave a Reply