South Asia: Alang stays resilient as Gadani, Chattogram grapple with HKC norms, capacity challenges

• Pakistan shipbreakers face make-or-break moment
  
  
• Bangladesh faces pressure from Eid slowdown
  
  

South Asia's ship-breaking markets faced falling steel prices, currency pressures, and regulatory uncertainty, with Alang seeing strong ship arrivals, Pakistan racing against certification deadlines, and Bangladeshs Chattogram yards nearing capacity amid an Eid-driven slowdown.

Alang stays resilient

Market has faced a tough period recently, with steel plate prices dropping by about $18/tonne (t) over the past couple of weeks and the rupee weakening against the dollar. Ongoing tariff issues with the US and high operating costs have added to the uncertainty, causing ship values in Alang to fall by around 5% in May.

Despite these challenges, Alang is seeing a surge in ship arrivals, with over 31,000 LDT expected this week -- more than Bangladesh and Pakistan combined. Some Pakistani buyers are even offering better prices for ships arriving before their import deadline, but after 26 June, India could see even more arrivals as Pakistan pauses imports and new international rules come into effect.

Alang could still have a strong June if ship arrivals remain high.

According to a market participant, "No ships are currently available for sale in the market."

Certification crisis: Pakistan yards race against HKC clock

The ship-breaking market is facing growing uncertainty, especially with the government possibly banning ship imports after 26 June until new certifications are issued. This has made Pakistani buyers eager to secure ships before the deadline, sometimes offering higher prices than Indian buyers for quick deliveries. However, if the ban takes effect, Pakistan's yards could see a sharp drop in activity, losing their competitive edge in the region.

With new international rules coming soon, Pakistan's position could weaken further, especially if it cannot quickly adapt to certification requirements.

While buyers are active now, the looming import ban and regulatory changes could lead to a slowdown, giving India's Alang a temporary advantage in ship recycling volumes and activity.

Prices retreat as Eid slowdown exposes market pressures in Chattogram

Bangladesh saw significant activity with several large vessels, including LNG carriers and a VLOC, sold to recyclers -- some heading to newly HKC-compliant yards. However, demand in Chattogram dropped sharply this week, with only 9 HKC-approved yards remaining operational (down from 35). These yards are now nearly full due to recent deliveries, including an unexpected smaller unit.

The standout deal was the BERGE FUJI (37,379 LDT), sold at $440/LT LDT-2025's largest dry bulk recycling sale. Meanwhile, Eid holidays slowed activity, and steel plate prices fell another $7/t to $548/t, down $30/t per month, though recyclers remain profitable.

Last week, Gadani Port received 10,176 LDT -- stable from last week.

Alang Port received 31,457 light displacement tonnage (LDT) compared with 12,206 LDT in the previous week.

Chattogram Port received 11,842 LDT compared with 24,634LDT in the previous week.