South Asia: Indian ship recyclers face stronger price competition from Bangladesh, Pakistan

• Alang focuses on specialised tonnage amid regional competition
• Limited vessel availability keeps recyclers selective across South Asia

South Asia’s ship recycling market remained mixed in week 42, with limited vessel availability and cautious steel demand shaping activity across India, Bangladesh and Pakistan. While Chattogram and Gadani saw firm indicative prices, Alang continued to focus on specialised tonnage amid intense regional competition for conventional vessels. Strong freight earnings and resilient second-hand ship values further restricted fresh vessel supply, keeping recyclers selective in their buying.

India: Alang focuses on specialised vessels 

Alang’s ship recycling market remained selective, with Indian recyclers facing stronger conventional price competition from Bangladesh and Pakistan. Buyers continued to favour specialised tonnage, including LNG carriers, reefers and passenger vessels, where non-ferrous metal content and vessel-specific requirements offer better commercial opportunities.

Domestic steel prices provided some support, with Alang plate prices rising from INR 42,700/t ($449/t) to INR 42,900/t ($451/t) before easing to INR 42,600/t ($448/t) on Friday.

Recent deliveries included the 1,226 LDT fishing vessel EVS, the 10,068 LDT tanker Right and the 9,886 LDT bulker Enisey. Indicative prices held at $465/LDT for dry bulkers, $485/LDT for tankers and $495/LDT for containers. With conventional competition intense, Alang’s opportunities remain concentrated in specialised vessels offering greater value beyond standard steel recovery.

Bangladesh: Ship recycling prices remain firm 

Chattogram remained South Asia’s leading conventional ship recycling market, with firm buying interest but few fresh transactions due to limited vessel availability. Strong freight earnings and firm second-hand ship values continued to discourage owners from selling.

Bangladesh’s steel market remained subdued, with weak finished steel demand limiting support for recyclers. Plate prices held steady at BDT 64,000/t ($518/t), while indicative prices remained firm at $510/LDT for dry bulkers, $530/LDT for tankers and $540/LDT for containers.

Recent deliveries included Petrova (2,398 LDT) and Pacific Leader (911 LDT). The approaching dry season may improve operating conditions, but stronger recycling activity will depend on vessel availability and domestic steel demand.

Pakistan: Gadani recycling prices hold amid low vessel availability 

Pakistan’s ship-breaking market remained subdued, with limited trading activity and no recent deals. Buying interest persisted for suitable vessels, although arrivals of previously purchased ships reduced immediate procurement needs.

Domestic plate prices rose to PKR 196,000/t ($707/t) from PKR 195,000/t ($704/t), but cautious steel demand limited further gains. An Alang market participant reported indicative prices at $500/LDT for dry bulkers, $520/LDT for tankers, $510-520/LDT for container vessels and $530-540/LDT for larger containers.

Lina F (5,688 LDT) was delivered on 2 October, while Portland II (7,381 LDT) and Maestro (5,143 LDT) were recent arrivals. Limited vessel availability and uncertain steel demand are likely to restrain fresh buying, with activity depending on sellers’ willingness to negotiate.