- Tonnage shifts to Alang amid global uncertainty
- NOC suspension freezes Bangladesh’s ship recycling market
South Asia’s ship-breaking markets are experiencing mixed dynamics, with India seeing increased activity even as Bangladesh is facing delays due to NOC issues. Meanwhile, Pakistan’s Gadani is struggling with idle yards. But Alang remains a key player despite market uncertainties.
Alang fills Chattogram void
India’s shipbreaking market remains active, with recyclers stepping in due to Bangladesh’s pause in bidding. Six ships, totaling 40,000 LDT, are idling at Alang, reflecting swift buying. However, steel plate prices show volatility.
Global concerns, such as US-China tariff uncertainties, add caution. While Indian recyclers are capitalising on the situation, the market faces uncertainty ahead with potential tariff impacts and looming tonnage shortages in May.
According to a market participant, “There is no considerable tonnage available in the market right now. Although six ships totalling around 40,000-50,000 LDT have arrived these are all small, routine units. It is the same kind of tonnage that has been circulating over the past month, nothing noteworthy or game-changing.”
“We are not looking to buy ships at the moment as prices are high, and there is no margin to be made under current conditions. It just isn’t unviable. Unless the existing overcapacity clears out, there is no real room for movement,” said a source.
Gadani struggles as tonnage shifts to Alang
Pakistan’s shipbreaking market has struggled to secure significant tonnage, with most ships directed to Alang, leaving Gadani’s yards idle since late 2024. This week, the trend continued, as local buyers were bypassed once again.
Steel plate prices dropped by $10/t to $624/t, and a weakening Pakistani Rupee has further pressured the market. Additionally, rising Chinese steel prices has put further pressure on local buyers.
With the HKC deadline approaching and infrastructure upgrades needed, Gadani faces challenges similar to those in Bangladesh. The upcoming monsoon and regional tonnage availability suggest a bleak outlook for Pakistan’s shipbreaking market in 2025.
Chattogram HKC compliance under scrutiny
Bangladesh’s ship recycling market has nearly come to a halt due to a two-week suspension of No Objection Certificates (NOCs), causing vessels to be redirected to India and Pakistan. Authorities are inspecting yards for upgrades to meet the Hong Kong Convention (HKC), which takes effect in June.
While some yards with approved SoCs are processing units, no new vessels have arrived in Chattogram this week due to NOC delays. The government has stressed that necessary upgrades must be initiated before further extensions are granted.
Local market conditions are worsening, with steel plate prices dropping to $478/t and the Taka weakening. These issues, combined with NOC delays, jeopardise Bangladesh’s dominance in the market.
Last week, Gadani Port received no new vessels compared to 13,533 LDT in previous week.
Alang Port received 39,334 light displacement tonnage (LDT) last week, up from 29,395 LDT in the previous week.
Last week, Chattogram Port received 6,509 LDT, up from 7,484 LDT in the previous week.
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