- India gains boost from LNG deals, strong arrivals
- Bangladesh faces HKC challenges, weak sentiment
South Asia’s ship-breaking markets showed mixed momentum this week. India witnessed stronger activity amid major LNG deals and higher arrivals, Pakistan’s market rallied with bulker acquisitions, while Bangladesh stayed muted amid Hong Kong Convention (HKC) hurdles, stalled projects, and weak sentiment.
India’s Alang gains momentum, securing 11 vessels
India’s ship recycling market regained momentum after months of sluggish activity and falling prices. Two large Moss‑type LNG carriers, ADNOC’s GHASHA (33,406 LDT) and AL KHAZNAH (33,456 LDT), were sold en bloc to Alang buyers for about $42.9 million, or $641.50/light displacement tonne (LDT), supported by their high non‑ferrous content.
Alang’s waterfront saw strong activity, with 11 vessels totalling over 107,000 tonnes (t) delivered, signalling a clear rebound. India’s advantage lies in its ability to handle non‑ferrous‑rich units, making it the preferred choice over Pakistan and Bangladesh, where yards remain tied up with HKC upgrades and compliance challenges.
Local fundamentals added support as steel plate prices rose by $4/t w-o-w to $432/t, offsetting a weaker rupee.
Notably, a Japanese-origin vessel of 11,000 LDT was booked at $438/LDT.
Gadani rebounds with key bulker acquisitions
Pakistan’s ship recycling market picked up, with Gadani recyclers securing bulkers RISING FALCON (5,694 LDT) and RISING EAGLE (5,440 LDT) en bloc at around USD 446/LDT. The deal was boosted by 250-300 t of bunkers, adding nearly $20/LDT in value.
Momentum is expected to build into Q4 as more vessels enter the market, and provisional Document of Authorisation to conduct Ship Recycling (DASR) certifications support ongoing HKC upgrades. Still, activity remains limited to a select group of recyclers, similar to Bangladesh’s situation.
Steel plates at $615/t witnessed limited sales, while a firmer rupee offered mild relief for Gadani ahead of August dry unit retirements.
HKC hurdles, stalled projects keep Bangladesh subdued
Bangladesh’s ship recycling market remained subdued as HKC adoption continued to pose major challenges. Ongoing yard upgrades, inspections, ministry approvals, and heavy paperwork slowed activity, while most recyclers with earlier tonnage already met immediate needs. With no fresh arrivals this week, activity is expected to stay muted.
Meanwhile, India is attracting key vessels with stronger prices and smoother HKC compliance. Bangladesh continues to face delays in cutting permissions and with stalled infrastructure projects, which have further dampened sentiment. Local steel plate prices slipped by about $2/t w-o-w.
Tonnage received last week
Gadani Port received 15,761 LDT compared with no vessel arrivals in the previous week.
Alang Port received 107,218 LDT, compared with 45,260 LDT in the previous week.
Chattogram Port received 35,077 LDT, compared with 43,532 LDT in the previous week.
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