- Pakistan shows renewed aggression for preferred tonnage
- Bangladesh struggles with delays, weak steel fundamentals
South Asia’s ship-breaking markets showed mixed momentum this week. While Alang and Gadani saw renewed activity amid firm buying interest and HKC progress, Chattogram remained under pressure from monsoon disruptions, weak prices, and stricter compliance norms.
Alang secures tonnage despite missed LNG deals
Alang saw a brief improvement last week, but momentum faded quickly as local steel plate prices fell by $2/t to $428/t and the Indian Rupee weakened to INR 86.15/1 USD, leaving recyclers on shaky ground.
Despite tight vessel supply, Alang managed to bring in over 42,000 LDT, including some sizeable units. Interest has also grown around MOSS-type LNGs with high non-ferrous value, drawing several buyers back to the bidding table, though some deals were narrowly lost to Bangladeshi yards.
Still, with unpredictable fundamentals and tariff uncertainty clouding the outlook, Indian offers may lose ground. For now, Alang remains the most stable option, especially with reliable cash buyers securing smooth deliveries.
Gadani gains momentum on HKC progress
Pakistan’s ship recycling market has regained some momentum, with buyers showing renewed aggression to secure limited tonnage particularly preferred dry bulk vessels. This week, two ships are idling off Gadani, awaiting DASR formalities and final clearance, signalling increased activity after a period of relative quiet.
Interest is rising at Gadani yards with HKC upgrades and provisional DASRs, despite flat steel plate prices at USD 612–615/t. However, higher service tax from 9% to 15% may increase operating costs.
With HKC progress and yards filling up, Pakistan is showing renewed commitment to recycling. Gadani may see a strong end to July and a positive start to August.
Chattogram struggles during monsoon
Bangladesh’s ship recycling market remains the weakest in the subcontinent, hit by the monsoon slowdown, weak prices, and regulatory hurdles. While five vessels totaling 66,000 LDT arrived this week, overall inflow remains inconsistent.
Full enforcement of the Hong Kong Convention (HKC) has slowed operations, with stricter documentation and inspections causing delays. At the same time, domestic steel plate prices have stalled around $552-553/t making imports less viable. The broader economic impact adds to market pressure, keeping Chattogram the lowest-priced destination for now.
Tonnage received last week
Gadani Port witnessed a 15,761 LDT of vessel arrivals, compared with 5,964 LDT in the previous week.
Alang Port received 48,251 LDT, compared with 103,980 LDT in the previous week.
Chattogram Port received 65,809 LDT stable as last week’s.
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