- Buyer competition eases as fresh tonnage arrives
- Fresh arrivals improve Gadani yard utilisation
South Asia’s shipbreaking markets remained broadly firm on 15 September, with Gadani supported by fresh arrivals, Chattogram by limited tonnage, and Alang by specialist vessel demand. Vessel availability and yard utilisation remained key price drivers.
Alang: Specialist tonnage sustains premiums
The market continues to diverge from the conventional subcontinent board, with specialist vessels commanding significant premiums. The 14,800 LDT Gearbulk-controlled general cargo vessel Mandarin Arrow was reportedly sold at around $510/LDT to a limited group of HKC-compliant yards, with about 130 t of bunkers on delivery. The deal highlights India’s premium for vessels offering non-ferrous content and compliance value beyond steel recovery.
Mandarin Arrow arrived at Alang on 10 September during the 8-16 September delivery-tide window, supporting activity in the specialist segment. However, conventional dry, tanker and container tonnage remained less competitive. Local plate prices eased to INR 41,800-42,000/t ($436-438/t), while rupee weakness reduced dollar-equivalent realisations, prompting recyclers to rely more on specialist cargoes and non-ferrous recovery to justify higher vessel bids.
Chattogram: Market strengthens as vessel scarcity supports prices
Chattogram’s shipbreaking market gained momentum this week as tight vessel availability strengthened buyer competition. After lagging Pakistan and India, Bangladesh is benefiting from a thin candidate list, with smaller dry bulk vessels trading at firmer levels. The 7,078 LDT UNIORDER was sold at around $450/LDT net, as-is Belawan, highlighting firm owner expectations.
On the waterfront, the 5,602 LDT Dina Ocean and 1,961 LDT Leo Star arrived on September 7 and 5, respectively, supporting yard activity during the September 10-13 tide window. However, arrivals remain insufficient for steady supply, while steel plate held at BDT 64,000/t ($520/t), keeping vessel scarcity and yard capacity central to pricing.
Gadani: Shipbreaking market firm but buying urgency eases
Gadani remained the strongest South Asian shipbreaking market this week, although the intense competition seen in August moderated as fresh tonnage reached the waterfront. The 7,381 LDT PORTLAND II was committed at $521/LDT, showing that suitable vessels can still attract firm bids.
Arrivals of Maria, Spring and BR Glory, along with Lyra’s delivery, have eased Gadani’s earlier vessel shortage and improved yard utilisation, allowing recyclers to be more selective rather than chase every candidate. With plate stable at PKR 200,000/t ($721/t) and currency conditions steady, softer bidding reflects lower urgency rather than weaker fundamentals, while increased vessel availability is gradually reducing competition among buyers.
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