- Trump’s tariffs, weak demand impact Alang’s activity
- Chattogram, Gadani continue to see limited arrivals
South Asia’s ship-breaking market remained dull last week, with Alang, Gadani, and Chattogram seeing limited activity. Tariffs, weak steel demand, currency fluctuations, and political uncertainty continued to weigh on tonnage and buyer sentiment.
Meanwhile, across the three recycling hubs, ship-breaking tonnage fell in August 2025, indicating subdued scrap demand amid a sustained steel market downturn.
Alang activity muted as tariffs, weak demand bite
India’s ship recycling market faced pressure, as Trump’s tariffs and sanctions drove the rupee to record lows near INR 88/USD. The collapse eroded buyer margins, forcing price cuts and leaving Alang subdued, with only limited specialist vessel negotiations active.
India’s compliance edge, due to fast adoption of the Hong Kong Convention (HKC), was challenged, with Pakistan and Bangladesh accelerating with yard upgrades. Flat steel prices near $449/t, weak exports, inflation, and limited arrivals kept Alang’s activity subdued despite its large infrastructure base.
Meanwhile, ship demolition tonnage declined 13% to 126,248 light displacement tonnes (LDT) in August from July’s 145,768 LDT. The number of units demolished totalled 11, down 8% from July’s 12.
Government’s green yard plan supports long-term Gadani outlook
Gadani saw no new arrivals last week, returning to the “no vessels to report” zone despite holding the region’s highest prices. Activity stayed muted on limited tonnage, though recyclers benefitted from stable margins as steel plate prices rose $4/t w-o-w to $625/t and the rupee remained firm.
The outlook remains supported by strong fundamentals and an INR 12 billion green project to develop 31 eco-compliant yards by 2026, with stable currency and resilient steel demand sustaining recycler confidence.
In August, demolition tonnage dropped 41% to 14,057 LDT from July’s 23,879 LDT. The number of units demolished remained steady at 3, unchanged from July.
Bangladesh’s accredited yards rise, but market activity stays frozen
The Bangladesh ship-breaking market remained paralysed, with no fresh arrivals and stalled activity. Local steel plate prices fell $21/t w-o-w to $520/t, pressured by cheaper imports and weak demand. The taka’s depreciation worsened sentiment, forcing recyclers to retreat from negotiations.
Active yards in Bangladesh’s ship recycling sector fell 40%, with political uncertainty and looming ready-made garment (RMG) tariffs overshadowing recovery. Despite 18 HKC accreditations, weak support left Chattogram recyclers facing a bleak outlook.
Ship demolition tonnage fell 57% to 43,830 LDT in August from July’s 101,179 LDT. The number of units demolished dropped by 50% to 4 from July’s 8.
Tonnage received last week
Gadani Port received nil tonnage compared to 2,261 LDT in the previous week.
Alang Port received 57,511 LDT, compared with 70,718 LDT in the previous week.
Chattogram Port received 7,809 LDT, compared with 29,223 LDT in the previous week.
Leave a Reply