- Rising steel prices, stable currency keep Alang market supported
- Pakistan active, dry bulk cargo secured amid HKC progress
South Asia’s ship-breaking markets showed mixed trends, with India leading in arrivals, Pakistan remaining active amid regulatory shifts, and Bangladesh struggling due to monsoon disruptions, weak demand, and HKC certification delays, despite some support from rising local steel prices.
Alang better suited to handle tonnage
India leads South Asia’s ship recycling market secured nearly 70,000 LDT of ships this week pushing Alang’s total tonnage to about 104,000 LD, while Bangladesh and Pakistan faced hurdles. Trade tensions and potential US tariffs add to the uncertainty, but India continues attracting tonnage.
Local steel plate prices have risen by $36/t in recent weeks, now hovering around $425-430/t. A stable currency and strong reserves continue to support market confidence. Meanwhile, container and tanker prices recently stood at $420-440/LDT-levels last seen in March 2021.
Alang recyclers, with far more approved yards, remain better positioned to handle tonnage. Specialized vessel arrivals, however, are slowing.
Gadani holds firm amid HKC challenges
Pakistan’s ship recycling market remains active, with recyclers securing dry bulk vessels amid efforts to comply with the Hong Kong Convention. Recent deals have been supported by provisional DASR certificates granted to yards progressing toward HKC compliance.
Local prices for ship scrap have so far held above the crucial $400/LDT mark, supported by strong steel plate prices, which climbed to nearly $620/t the highest in South Asia
Regulatory confusion persists, causing delivery delays and making Pakistan’s market cautiously busy yet vulnerable to shifting fundamentals.
Chhattogram stumbles but clings to recovery
Bangladesh’s ship recycling market has slumped to lows not seen since early 2024, with deals dipping below $400/LDT. Heavy monsoon rains, slow construction, and weak steel demand have dampened activity, cash buyerspushing many ships toward India and Pakistan instead.
Regulatory confusion has worsened the slowdown, as only 12 yards hold HKC certification, while others rush to comply. Even local authorities have added uncertainty by mistakenly approving an uncertified yard.
Despite this, there are small positives. Steel plate prices inched up $3-4/t to $550-552/t, the Bangladeshi Taka strengthened, and a new LNG vessel arrived, raising hopes.
Tonnage received last week
Gadani Port witnessed a 5,964 LDT of vessel arrivals, compared to no vessel reported in the previous week.
Alang Port received 103,980 LDT, compared with 45,260 LDT in the previous week.
Chattogram Port received 42,014 LDT compared with 43,532 in the previous week.
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