South Asia ship-breaking market sees contrasting trends; Pakistan up, India steady, Bangladesh down

• India leads with compliance, firm steel prices
  
  
• Pakistan gains on DASR buying, steady rupee
  
  

South Asia's ship-breaking markets showed mixed trends, with India strengthening on compliance and steady steel prices, Pakistan gaining from DASR-backed buying, and Bangladesh weakening on poor demand despite a rise in vessel arrivals.

India's Alang strengthens with crackdown on sanctioned vessels

India's ship recycling market at Alang has strengthened, with authorities cracking down on sanctioned vessels and ensuring compliance, which reassured global shipowners. This stricter stance, combined with Alang's long-standing HKC adherence, attracted several large vessels, including a cape and a tanker, reinforcing its reputation as the safest recycling hub in the region.

Local fundamentals added support, as steel plate prices held firm around $622/t while the rupee showed slight stability. With rivals like Pakistan relying on provisional DASRs and Bangladesh struggling to compete, India's mix of regulatory stability, environmental compliance, and steady pricing has made it the clear frontrunner for ship recycling.

DASR certificates boost buying despite lack of HKC approvals in Pakistani

Pakistan's Gadani market has taken the lead in South Asia's recycling scene, with prices holding above $400/t as both India and Bangladesh weakened. Provisional DASR certificates have allowed buyers to secure ships despite no yards being HKC-approved.

Strong local fundamentals are driving confidence, with steel plate prices rising to $622/t, well above regional levels, while the rupee stayed relatively stable. This has supported aggressive bidding for tonnage.

As a result, four vessels totaling over 16,000 LDT were committed to Gadani recently, marking a sharp revival. Larger ships are preferred, while smaller LDT units remain harder to place.

Bangladesh ship recycling weakens on low demand, vessels arrive

Bangladesh's ship recycling market remained under pressure as excess inventories, cheaper imported steel, and sluggish domestic demand dragged sentiment. Local steel plate prices fell sharply by $9/t, ending the week at $540/t, as mills preferred low-cost imports over recycled steel.

Despite weak fundamentals, activity picked up slightly with the beaching of five vessels totaling nearly 52,000 LDT, including a 21,000 LDT bulker. These arrivals came as Chattogram buyers paid up to compete with India and Pakistan, where higher price levels have been attracting more tonnage

Tonnage received last week

Gadani Port received 25,233 LDT compared to 11,486 LDT in the previous week.

Alang Port received 81,477 LDT, compared with 56,778 LDT in the previous week.

Chattogram Port received 51,639 LDT, compared with 30,225 LDT in the previous week.