- Fresh vessel availability remains limited
- Plate prices diverge in South Asian markets
South Asia’s ship recycling market remained mixed on 29 September, with buyer interest improving in Chattogram but fresh vessel availability limited. Gadani remained active despite slower buying, while Alang stayed competitive for specialist tonnage. Plate prices were stable in Bangladesh and Pakistan but declined in India.
India: Alang remains active in specialist tonnage
Alang’s ship recycling market continued to show a clear divide between conventional and specialist tonnage. Bulk carriers and tankers remained less competitive than Pakistan and Bangladesh, while reefers, gas carriers, green ships and non-ferrous-rich vessels continued to attract selective buying. The proposed inclusion of two Indian recycling facilities on the European List remains supportive, although final approval is pending.
Frio Hellenic (6,520 LDT) was delivered on 19 September, while Novaya Zemlya (8,110 LDT) remained at anchorage. No fresh recycling sales were reported during the week, although specialist tonnage continued to support yard activity.
Meanwhile, Alang plate prices declined from INR 42,200/t ($439/t) to INR 40,000/t ($417/t) by 25 September, putting further pressure on recyclers. Conventional vessels remained less competitive, while specialist tonnage continued to attract stronger buying interest.
According to market participant, “Ship recycling market sentiment strengthened, with ingot prices rising by around INR 1,500/t. Activity also picked up in the imported shipbreaking segment.”
- Non-OFAC: 8,000 t, 2009-built vessel, China origin – $430/t CFR West Coast India
- OFAC: 28,000 t, 1997-built vessel, Spain origin – $530/t CFR West Coast India
Bangladesh: Chattogram demand improves, fresh supply limited
Chattogram’s ship recycling market has seen a gradual improvement in buyer appetite in recent weeks, although fresh vessel supply remains constrained ahead of the fourth quarter. Several vessels, including Cury (3,822 LDT), Xiang Rui (1,304 LDT) and Ganga Hai 666 (5,733 LDT), were delivered on 25 September, while Mutiara (28,773 LDT) and Fei (11,078 LDT) arrived at anchorage. However, most of these vessels were secured earlier and do not signal a meaningful recovery in fresh recycling sales.
Chattogram plate prices remained stable at BDT 64,000/t ($520/t), providing limited movement in downstream steel market conditions.
With yards increasingly equipped for HKC-compliant tonnage, buyer interest has strengthened. However, limited vessel availability remains the key constraint, as owners have alternative recycling destinations.
Pakistan: Gadani retains lead as August buying surge cools
Gadani continued to lead the South Asian ship recycling market, although buying activity has eased from the exceptional levels seen in August. Several tanker deals were concluded above $550/LDT during the earlier buying surge, supported by pent-up demand and tight vessel availability. No fresh sales were reported this week, but buyers remain active for suitable candidates.
Market remained stable, with Maria (6,141 LDT) delivered on 19 September, while Yue (11,060 LDT) and Lina F (5,688 LDT) remained arrivals. Plate prices held steady at PKR 195,000/t ($704/t), supported by stable steel prices and progress on HKC-related approvals and yard upgrades, while buying activity normalised from August’s peak.
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