- Shipping groups back proposal to include Indian facilities on European List
- Chattogram demand improves, but bids remain uncompetitive
South Asia’s ship recycling market remained mixed during the week ended 22 September, with Gadani retaining its competitive edge while Alang benefited from specialist tonnage and Chattogram saw improving post-monsoon demand. Fresh vessel sales remained limited across the region, as steel prices, vessel availability, and competitive bidding continued to shape recycling activity.
India: Alang remains active with arrivals of specialist tonnage
Alang’s ship recycling market remained active, despite conventional bulkers and tankers continuing to face stronger competition from Pakistan and Bangladesh. Demand remained relatively better for specialist vessels, including reefers, tankers, and non-ferrous-rich tonnage.
Mandarin Arrow and James (22,657 LDT) were delivered during the week, while Frio Hellenic (6,520 LDT) and Novaya Zemlya (8,110 LDT) also arrived.
Meanwhile, eight international shipping associations backed the proposal to include two Indian recycling facilities on the European List, supporting India’s position in compliance-sensitive recycling.
Local plate prices eased slightly to INR 42,500/t ($444/t). Overall, conventional pricing remains challenging, but specialist tonnage and regulatory developments continue to support activity at Alang.
Bangladesh: Chattogram demand improves, but bids remain uncompetitive
Chattogram’s ship recycling market showed gradual recovery this week, with buyer interest improving after the monsoon. However, fresh deals remained limited, while Pakistani yards continued to offer more competitive bids for suitable vessels.
Waterfront activity also picked up, with Dina Ocean (5,602 LDT) and Leo Star (1,961 LDT) delivered, followed by Forever (16,708 LDT), Ganga Hai 666 (5,733 LDT), NEPT (3,060 LDT) and Xiang Rui (1,304 LDT) arriving between 15-17 September.
However, increased vessel activity has yet to translate into fresh recycling deals. Local plate prices remained unchanged at BDT 64,000/t ($521/t), limiting room for higher vessel bids. While post-monsoon demand is recovering, sharper pricing may be needed to convert renewed buyer interest into fresh vessel acquisitions in Chattogram.
Pakistan: Gadani maintains lead despite limited fresh sales
Gadani remained the strongest South Asian ship recycling market this week, despite no fresh vessel sales amid limited candidate availability. Recent activity included deliveries of Spring (2,449 LDT), BR Glory (5,000 LDT) and Larus (2,632 LDT), while Yue (11,060 LDT) arrived on 16 September.
Local plate prices eased to PKR 195,000/t ($703/t) from PKR 200,000/t ($721/t), putting some pressure on recycling margins. Despite limited tonnage and strong freight earnings, buyer interest remained healthy, although softer steel prices could encourage more cautious bidding for suitable conventional vessels.
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