The South Asian ship recycling market displayed a mixed trend w-o-w. In India, subdued activity persisted following January’s HKC container deals, attributed to lacklustre local demand. Contrastingly, Bangladesh and Pakistan emerged as strong contenders, actively competing for Chinese-controlled tonnage.
India
Since the last deals involving HKC containers in January, India’s ship recycling market has been quiet due to weak local demand. However, active buyers are facing tough competition from Bangladesh and Pakistan, which are better positioned and more aggressive in grabbing Chinese-controlled tonnage for recycling.
Despite an improvement in local plate prices and the strengthening of the Indian Rupee against the US dollar, the market remained stagnant.
The total tonnage received in Alang was around 9,283 LDT this week.
Pakistan
Despite the recent beaching of a capesize bulker in Gadani, Pakistan, there’s still only a trickle of ships coming in, making it a quiet period for ship recyclers globally. Due to geopolitical concerns and rising freight rates, Pakistani buyers are frustrated and mainly relying on smaller LDT tonnage in regional waters, similar to their Bangladeshi counterparts.
Despite some domestic stability, with the Pakistani rupee ending the week on a positive note against the US Dollar and local steel plate prices remaining steady, Gadani buyers are closely following prices in Chattogram.
The total tonnage received in Gadani was around 7,088 LDT this week.
Bangladesh
This week, Bangladesh saw the arrival of several vessels for recycling, predominantly owned and operated by Far East entities nearing the end of their trading lives. Despite more deliveries expected, the Chattogram choppers remained proactive in securing available tonnage. Deals included older and smaller LDT bulk carriers fetching impressive rates, such as LIAN FENG 6 and YAMTAI. These vessels secured rates exceeding $500/LDT, highlighting a robust market for smaller LDT units and ‘as is’ deliveries.
The buying spree is fuelled by relaxed local government restrictions on Letter of Credit (L/C) and a stable Bangladeshi taka against the U.S. dollar. Meanwhile, local steel plate prices remained stable but strong enough to support bidding confidence among domestic recyclers.
However, despite recent activity, a gradual sense of market fatigue is emerging as many buyers have already maximised their L/C limits. These recyclers may have fulfilled their demand just in time for the upcoming pre-monsoon season, historically marked by increased activity in sub-continent recycling destinations.
The total tonnage received at Chattogram Port was around 22,831 LTD this week.
