South Asia: Ship recycling markets witness muted demand, limited activity 

• Alang activity dips on currency, steel market volatility
• First Pakistani yard clears HKC hurdle but activity subdued

The South Asian ship recycling markets showed caution this week as weak steel prices, currency volatility, and limited vessel inflows weighed on demand. India and Pakistan struggled with low offers and soft demand, while Bangladesh recorded higher arrivals but continued to face economic and political constraints.

India: Activity in Alang dips sharply

Alang recorded 29,844 LDT this week, down sharply from 49,087 LDT previously, with no major deals concluded. Indian offers continued softening in line with global market trends, while recyclers navigated a difficult two-tier environment driven by cheaper dark-fleet tonnage, lower-priced imported steel, and volatile domestic plate prices.

Local steel plate prices improved to $398/t, though smaller units struggled to secure above $400/t. Competition from Bangladesh and Pakistan intensified pressure. Alang’s port position is thin, with only one vessel and no new fixtures, keeping sentiment weak as December approaches.

Bangladesh: Market steady but activity subdued

Chattogram received around six vessels totaling 63,479 LDT this week, but overall activity remained softer than expected. Despite Bangladesh still leading pricing, workable candidates remained limited, and vessel supply stayed well below expectations as only occasional tankers and LNG units found their way to buyers.

Steel plate prices hovered near $526/t as the Taka weakened against the USD. Unsold inventories, cheaper imported steel, and rising pre-election instability pressured demand, keeping sentiment weak despite growth in HKC-approved yards.

Pakistan: Waterfront activity remains minimal

Gadani recorded just 1,444 LDT this week, down from 8,522 LDT previously, as recyclers stayed cautious with no meaningful offers reported. The first domestic yard is set for HKC approval, with several more expected in the next three-six months, offering long-term promise for the market.

Local steel plate prices fell by $11/t to $586/t, while the PKR showed a slight recovery. Weak fundamentals, cheaper Iranian imports, and a third week without new vessel arrivals pressured sentiment. The only delivery was a distressed vessel idling at the waterfront for over a month.