- Q4 outlook improves for India’s shipbreaking market
- Firm steel plate prices support regional sentiment
South Asia’s shipbreaking market showed mixed trends in late August, with India gaining momentum while Pakistan remained on balance while Bangladesh stayed subdued. Firmer steel plate prices and strong competition for vessels shaped regional buying activity.
Alang shipbreaking market gains momentum
Alang’s shipbreaking market improved in the final week of August supported by higher-value non-ferrous units, green ships, reefers and passenger vessels. However, standard dry and tanker tonnage remained difficult to secure amid strong competition from Pakistan and Bangladesh.
The 18,848 LDT LPG carrier Ble In arrived at Alang on August 23, adding to recent specialist vessel deliveries. Alang’s compliance infrastructure and capacity to handle complex, higher-value vessels continue to support its position in this segment.
Local plate prices strengthened from INR 40,500/t to INR 41,000/t, briefly reaching INR 41,300/t, equivalent to around $429/t, while the rupee also strengthened.
Although India remains less competitive for conventional tonnage, firming steel prices and continued specialist vessel arrivals are providing a more positive outlook heading into Q4.
Bangladesh market subdued amid safety probe
Bangladesh’s shipbreaking market remained subdued, with the recent accident and ongoing government investigation weighing on sentiment. Authorities have suspended operations at the affected facility pending clearances, keeping safety and compliance concerns in focus.
Chattogram yards continued processing recently arrived vessels, including Than, Param, Bursa and Wantong 498, while the 27,824 LDT FPSO Glow also arrived. However, fresh tonnage remained limited, keeping recyclers cautious.
Local steel plate prices held at BDT 64,000/t ($522/t), while the taka strengthened. Overall, post-monsoon demand remains slow, with steady vessel movements but subdued fresh buying and limited tonnage availability.
Gadani market cools after August buying surge
Gadani’s shipbreaking market remained firm after a strong August buying run, with limited tonnage and intense competition pushing tanker prices above $550-560/LDT. However, prices have started correcting as recyclers covered some pent-up demand.
Local steel plate prices declined from PKR 203,000/t ($730/t) to PKR 200,000/t ($720/t) from August 25, while vessel prices also eased. Despite this, scarce candidates continue to support buying interest.
The 8,128 LDT Visakha and 4,990 LDT Lyra arrived at Gadani on August 21, replenishing the waterfront after weeks of limited tonnage. The rupee remained supportive, while yards continued efforts toward Hong Kong Convention standards.
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