- Local holidays limit fresh Alang transactions
- Gadani buying urgency eases after strong procurement
South Asia’s ship recycling markets saw divergent trends during week 41, with Chattogram regaining the regional lead on stronger demand and limited vessel availability, while Gadani slipped to second after building a healthy vessel pipeline. Alang remained selective, as local holidays limited fresh transactions and specialist tonnage continued to attract stronger buying interest.
Alang remains selective as holidays temper ship recycling activity
Alang’s ship recycling market remained subdued this week as local holidays slowed fresh transactions at the start of October. However, India continued to attract specialist tonnage, including LNG carriers, reefers, passenger ships and non-ferrous-rich vessels, while conventional bulkers and tankers remained less competitive than in other South Asian markets.
Recent deliveries of Orion (28,214 LDT) and Novaya Zemlya (8,110 LDT) supported yard activity but did not translate into a broader buying revival. Alang plate prices climbed from INR 40,500/t ($420/t) to INR 42,600/t ($442/t) before easing to INR 42,300/t ($439/t), improving recyclers’ steel realisations.
However, rupee depreciation partly offset these gains. With macroeconomic conditions relatively stable, recyclers remained cautious about chasing conventional vessels during the holiday-shortened week.
Chattogram regains lead as tight supply boosts bids
Chattogram entered Q4 with stronger ship recycling demand, regaining the top position as buyers competed aggressively for limited fresh tonnage. Recycling indications rose to $510/LDT for dry bulk, $530/LDT for tankers and $540/LDT for containers, while Bangladesh plate prices remained stable at BDT 64,000/t ($521/t).
The firmer market was driven by limited vessel availability and healthy yard capacity, despite subdued steel demand. The sale of ASIA CEMENT NO.3 (3,520 LDT) at $446/LT as-is Taiwan reflected improved buyer appetite. Recent deliveries included Mutiara (28,773 LDT) and NEPT (3,060 LDT), while scarce candidates are keeping Chattogram’s market firm.
Gadani slips to second place as vessel supply eases buying urgency
Gadani moved to second place as Bangladesh returned with stronger conventional bids. Following several months of aggressive buying, Pakistani yards have built a healthy vessel pipeline, reducing immediate requirements for fresh tonnage and allowing buyers to bid more selectively.
Recent deliveries, including Yue, Portland II and Maestro, have kept Gadani yards well supplied. Plate prices remained stable at PKR 195,000/t ($704/t), while recycling indications eased to $500/LDT for dry bulk, $520/LDT for tankers and $530/LDT for containers. Demand remains firm, but better vessel availability has reduced buying urgency.
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