- Bangladesh experiences price pressure due to upgrade deadline
- Gadani sees slight improvements but faces compliance hurdles
South Asia’s ship-breaking markets saw different trends prevailing in different countries. Bangladesh continued its dominance with strong pricing, while Pakistan struggled to secure significant tonnage despite some improvements. India experienced a slight rise in prices, but domestic fundamentals remained under pressure.
Alang sees slow activity
Alang recyclers have seen slow activity in recent weeks, with sales remaining limited to a few HKC-compliant vessels and specialised offshore units, allowing Pakistan to move ahead in rankings. However, market sentiment showed signs of improvement, with increased demand and better pricing.
Indian plate prices rose by $10/t to $455/t, and the Rupee strengthened slightly.
Despite facing challenges from US tariffs on vehicle imports and oil sanctions, India’s ship-breaking sector is showing some signs of improvement. However, the market remains sluggish, with only two ships and 6,000 LDT delivered this week, indicating ongoing struggles to stay competitive.
A market participant commented, “The market is showing positive signs, with scrap prices rising by INR 2,000/t from their lowest point.”
Current offers are as follows:
Tanker: $460-465/LDT
Container: $470-475/LDT
Alang Port received 6,517 light displacement tonnage (LDT) last week, down significantly from 7,578 LDT in the previous week.
Pakistan remains active with more vessels arriving
Gadani showed gradual improvement. However, Gadani’s anchorage now holds more vessels and LDT than Alang, a rare occurrence that should keep recyclers engaged.
Steel plate prices fell by $4/t this week to $624/t, marking a $40/t decline over four weeks. The Pakistani Rupee firmed slightly by 5 basis points, still near record lows. Post-Eid, Gadani’s purchasing strategy remains uncertain, but the steady arrival of vessels signals potential recovery.
Most Gadani recyclers are yet to obtain SOC certifications. With NoCs unavailable from April for non-compliant yards, Pakistani facilities risk exclusion after June 2025 unless urgent action is taken.
Last week, Gadani Port received 11,665 LDT, a decrease compared to 14,126 LDT in the previous week.
Bangladesh leads with strong prices
An OFAC-listed VLCC in Bangladesh is set to depart for India, while another remains stranded without a resale agreement or No Objection Certificate (NOC), facing strong opposition from authorities.
Ahead of the 31 March deadline for yard upgrades, the ship-breaking market in Bangladesh is seeing premiums for favoured vessels, but recyclers who have not upgraded will be unable to import ships after Eid. Uncertainty looms as facilities risk exclusion from the market if they do not meet HKC standards by June.
Despite some interest in prompt delivery units, steel prices have remained flat at $529/t, and the Bangladeshi Taka showed minimal movement. Regional concerns over the recent Myanmar earthquake may disrupt Chattogram operations.
Last week, Chattogram Port received 61,859 LDT, down from 103,617 LDT in the previous week.
Leave a Reply