- Pakistan supported by strong plate prices and firmer PKR
- India secures large LDT units despite sanction concerns
South Asia’s ship-breaking markets showed mixed sentiment, with Pakistan holding firm on fundamentals, India staying active despite tariff risks, and Bangladesh struggling under weak demand, currency pressure, and limited arrivals amid monsoon disruptions.
Alang stays active with steady fundamentals but tariff risks loom
India’s ship recycling market remained active despite concerns over Western sanctions on Russian oil and tighter enforcement, marked by recent arrests at Alang. Recyclers secured nearly 140,000 LDT across eight units, including a large tanker and LNG. Owners favored India over Pakistan to avoid risks tied to provisional DASR certificates and Gadani rejections.
Steel plate stayed steady at $437/t, though tariff risks and Chinese steel diversion may pressure values.
A market participant reported that “vessel prices in Alang remain elevated, even as the market shows signs of decline. Buying sentiment is cautious with limited workability at current levels.”
- Containers: 440-450/t
- Tankers: 430/t
Gadani steady on fundamentals, activity remains limited
Pakistan remained the strongest subcontinent ship recycling market, though Gadani activity was limited as summer holidays and uncertainty over provisional DASR certificates restricted deals. India absorbed larger units, leaving Gadani with smaller LDT vessels.
Despite steady steel plate at $622/t and a firmer PKR, rising inflation and profit outflows continue to pressure the market.
Chattogram market stalls on weak demand, currency woes
Ship recycling in Chattogram stayed stagnant, with no arrivals or deliveries this week. Weak demand, monsoon disruptions, and government inaction weighed on fundamentals, while recyclers focused on HKC yard upgrades amid slow domestic steel demand.
Steel plate prices stayed flat as the Taka weakened, while stockpiles and diverted Far East units kept Chattogram a non-viable destination.
Tonnage received last week
Gadani Port received 13,747 LDT compared to 25,233 LDT in the previous week.
Alang Port received 138,991 LDT, compared with 81,477 LDT in the previous week.
Chattogram Port received 29,223 LDT, compared with 51,639 LDT in the previous week.
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