South Asia: Ship-recycling market remains active in India; weak fundamentals stall Bangladesh

• Alang leads in trades, but weakening rupee squeezes margins
• Gadani recyclers eye DASR approvals to attract fresh tonnage

South Asia’s ship-breaking markets showed mixed sentiment, with Alang active but pressured by currency weakness, Gadani steady on strong plate prices and a stable currency, while Chattogram stalled amid weak demand and political uncertainty.

Alang leads subcontinental activity despite currency pressure

India’s Alang market was the busiest in the subcontinent this week, logging seven vessels, totalling about 90,653 light displacement tonnes (LDT). While some were older arrivals stuck at anchorage, fresh deliveries included a few sizeable tankers, enough to keep activity alive compared to the inactivity in Bangladesh and limited tonnage in Pakistan.

Alang’s steel plate prices rose to $449-450/t, yet the rupee’s fall offset gains and squeezed margins. Recyclers grew cautious despite seasonal support. HKC-compliant yards continued attracting large and non-ferrous units, while smaller tonnage was increasingly diverted to aggressive buyers in Pakistan over the coming weeks amid persistent caution.

Pakistan banks on DASR approvals to attract fresh tonnage

Pakistan’s ship recycling market remained quiet but steady, with only one vessel recorded this week. Despite limited activity, Gadani recyclers maintained strong intent, supported by their DASR approvals and hopes of attracting larger tonnage.

The market stayed competitive with the region’s highest plate prices at $622/t and a steady PKR 281.8/US dollar. Gadani recyclers, supported by HKC yard upgrades, awaited large LDT units, aiming to turn stable fundamentals into fresh arrivals.

Inflation, idle yards weigh on ship recycling in Bangladesh

Bangladesh’s ship recycling market stalled, with no new arrivals for a second week. HKC compliance issues and uncertified yards left activity fragmented, pushing Chattogram behind India and Pakistan.

Local fundamentals remained weak with recycled steel stuck, smaller vessels ignored, and only large LDT ships finding buyers. Flat steel prices were at $542/t, and an 8.55% inflation rate and political uncertainty kept Bangladesh’s ship recycling market paralysed.

Tonnage received last week

Gadani Port received 2,261 LDT compared to 13,747 LDT in the previous week.

Alang Port received 70,718 LDT, compared with 138,991 LDT in the previous week.

Chattogram Port received 29,223 LDT, stable compared with the previous week.