- Alang faces shortage of large vessel arrivals
- Freight costs and risks influence market sentiment
Ship recycling activity across the Indian sub-continent showed mixed trends, as assessed on 31 March. Post-Eid demand improved in Bangladesh, while India saw better sentiment on rising plate prices and Pakistan faced continued margin pressure.
However, limited vessel availability across key destinations kept overall activity restrained due to Middle East crisis, with mixed steel price trends and financing constraints maintaining a cautious market outlook.
Plate prices rise while Alang supply constraints persist
India’s ship recycling market showed improved sentiment this week, supported by a sharp rise in domestic steel plate prices, boosting recyclers’ confidence. However, overall activity remained limited due to a shortage of incoming vessels, particularly large LDT units, as owners continued to favour trading amid strong freight earnings and high oil prices. Additionally, a strong dollar against the INR increased import costs, impacting recyclers’ buying appetite.
Market participants noted only a few smaller vessels arrived at Alang, keeping yard utilisation low. Despite supply constraints, India retained a competitive edge with over 110 HKC-compliant yards, though uncertainty around EU approval continues to impact future inflows.
Arrivals improve despite pressure on Gadani margins
The ship recycling market showed a slight improvement this week, with vessel arrivals surpassing India despite an overall slowdown across the sub-continent. The modest inflow reflects continued buyer interest at Gadani, supported by available yard space and proximity to Gulf tonnage.
However, domestic fundamentals remained weak, with steel plate prices declining consistently over the past month, compressing recycler margins. The relatively stable Pakistani rupee provided some support to market sentiment. The addition of a few HKC-compliant yards has improved Gadani’s positioning as a viable alternative in the region.
Chattogram: Post-Eid demand improves amid cautious outlook
Bangladesh’s ship recycling market showed improved sentiment post-Eid, with Chattogram recyclers returning actively to the market after clearing inventories and arranging financing. Buyer interest increased, with several participants seeking fresh tonnage following the holiday lull.
However, challenges persist. Steel prices in Bangladesh and China remained largely flat, offering limited support for higher bids, while LC-related constraints continued to delay transactions, though some improvement was noted.
Market participants also remained cautious due to ongoing issues with sanctioned vessels, prompting stricter due diligence. While demand has picked up, actual activity will depend on vessel availability and smoother financing flows in the coming weeks.
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