South Asia: Limited vessel availability and price competition shape ship recycling markets

• Alang targets specialised vessels amid regional price competition
• Chattogram’s firm buying appetite faces limited vessel availability

South Asia’s ship recycling market remained subdued in 42 week, with limited fresh deals and cautious demand. Bangladesh led, followed by Pakistan and Alang. Plate prices strengthened in Chattogram and Gadani but eased slightly in Alang. Strong freight earnings, attractive resale values and limited vessel availability restricted new sales, while Alang’s opportunities centred on specialised vessels, including LNG carriers.

India: Specialised vessels offer value amid Alang’s pricing challenges

Alang’s ship recycling market remained subdued, with India trailing Bangladesh and Pakistan in pricing competitiveness. Conventional recycling indications remained unchanged, while limited fresh sales kept market sentiment cautious.

Deliveries of specialised vessels supported yard activity, including the 31,300 LDT LNG carrier Kano on 15 October and the 4,815 LDT vessel Kadija. The 9,877 LDT tanker Maymei was delivered on 11 October, while the tanker Modeste arrived on 14 October.

Alang plate prices declined from INR 42,600/t ($449/t) to INR 42,300/t ($445/t) by 16 October. India’s proposed inclusion of two facilities on the European List remains pending. Specialised vessels, including LNG carriers, reefers and passenger ships, continue to offer higher-value recovery opportunities.

Bangladesh: Chattogram’s firm buying appetite faces limited vessel availability

Chattogram remained South Asia’s leading conventional ship recycling market, with strong buying interest but limited fresh deals due to vessel shortages. High freight earnings and attractive second-hand ship values continued to discourage owners from selling.

Local steel plate prices rose from BDT 64,000/t ($519/t) to BDT 66,000/t ($535/t) on 11 October and remained stable through Friday. Recycling prices held steady at $510/LDT for dry bulkers, $530/LDT for tankers and $540/LDT for containers, amid subdued finished steel demand.

Recent arrivals included the 7,078 LDT bulker Uniorder and the 8,275 LDT tanker Green. These movements involved previously secured vessels rather than fresh sales. The approaching dry season may improve operating conditions, but recovery depends on increased vessel availability and stronger domestic steel demand.

Pakistan: Gadani processes earlier purchases amid subdued fresh buying

Pakistan’s ship recycling market remained subdued, with limited fresh deals despite buyer interest. Deliveries of previously purchased vessels supported yard activity, while vessel shortages kept Pakistan in second place behind Bangladesh in conventional recycling.

The 5,143 LDT bulker Maestro was delivered on 14 October, following Portland II on 9 October. Steel plate prices rose from PKR 192,000/t ($692/t) to PKR 195,000/t ($703/t) on 12 October and remained stable through Friday.

Recycling prices remained unchanged amid weak finished steel demand and competition from imported scrap. With fresh vessel availability limited, Gadani’s near-term activity will depend on sellers’ price expectations and stronger steel demand. Buyers are likely to maintain cautious procurement and protect margins.