- Chattogram sees steady demand despite currency woes
- Indian recyclers struggle amid falling steel plate prices
South Asia’s ship-breaking markets faced mixed fortunes last week, with Bangladesh leading in both pricing and tonnage, while India and Pakistan continued to struggle under supply constraints and economic pressures.
Notably, so far in Q1CY’25, Bangladesh has surpassed India and Bangladesh in terms of weekly tonnage arrivals and purchase prices.
India’s Alang struggles amid steel price drop, depreciating rupee
Alang’s yards remained largely empty last week with the arrival of only one unit. Declining local steel plate prices, currently at $443/tonne (t), and a firm US dollar above INR 87 worsened the situation for Indian ship-breakers, eroding their margins and weakening buying interest.
Activity at Alang has slowed considerably since January, with buyers staying cautious, waiting for vessels compliant with the Hong Kong Convention (HKC). With freights still high and supply thin, recyclers have been struggling to secure meaningful tonnage.
A market participant noted, “There is hardly any tonnage available unless at an unreasonably high price, and even then, demand for material from small ships remains weak. The ongoing tariff war is only set to worsen the situation, further dampening sentiment in an already struggling market.”
Another source highlighted, “The market remains under pressure, with overall sentiment weak and uncertainty fuelled further by the exchange rate volatility.”
Alang Port received 4,856 light displacement tonnes (LDT) last week, down significantly from 76,020 LDT in the previous one.
Pakistan’s Gadani stirs slightly despite tight supply, HKC delays
After weeks of inactivity, a small bulker arrived at Gadani Port, offering a brief boost. Still, vessel supply remained tight amid firm freights and despite aggressive bids. As a result, many recyclers have shifted focus to HKC facility upgrades.
Gadani recyclers have struggled since Q3CY’24, securing just two vessels despite relatively stable conditions. The Pakistani rupee firmed slightly, but steel plate prices kept falling, though they remain the highest in the region.
Notably, Gadani has yet to receive HKC and other Statement of Compliance (SoC) approvals or recycle an HKC-compliant vessel. It seems that Gadani will miss the 26 June deadline for HKC compliance, which has kept shipowners cautious for now.
According to a market participant, Pakistan’s market witnessed some activity last week, with offers coming in, but buyers were selective, holding out for quality tonnage at current or discounted levels. While there is some buying interest, recyclers are holding back, as prices still feel too high, so deals are taking time.”
Last week, Gadani Port received 5,219 LDT, an improvement compared to the nil tonnage seen in the previous one.
Bangladesh leads recycling market despite currency woes
Bangladesh continued to lead the ship recycling market in both pricing and tonnage last week. Strong local steel plate prices, stable at $529/t, remained the backbone of Bangladeshi offers, keeping them ahead in market rankings. However, the weakening taka raised concerns about future price stability.
Despite economic and political instability, recyclers remained eager, with demand growing, especially from Tier 2 buyers. Limited supply at the bidding tables fuelled frustration, even as seven vessels, totalling 72,000 LDT, including an LNG tanker, arrived at Chattogram.
Local sales continued, including RUN FU 6 (6,297 LDT) from China, sold at a softer $435/LDT.
Last week, Chattogram Port received 71,670 LDT, down from 98,673 LDT in the previous week.
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