South Asia: Imported ship-breaking market muted amid approaching Eid holidays

Last week, the South Asian ship recycling markets remained muted as financial constraints hindered activity in Bangladesh. The ratification of the Hong Kong Convention (HKC) brought positive news, but challenges remain in obtaining L/C approvals for incoming vessels.

The monsoon season and Eid holidays further contributed to reduced activity in Bangladesh and India. The Pakistani market remained unchanged and Turkish recyclers were under pressure due to the weakening Turkish lira.

Overall, the market outlook remains bleak with weak prices and limited buyer interest in the key recycling destinations.

Alang market dull

India's Alang market remained muted with no confirmed transactions reported last week. Despite discussions on vessels for HKC-only resale, ship owners showed little interest in offered price levels.

As the monsoon season approaches and labourers prepare to return to their hometowns, it is anticipated that India will have an advantage over Bangladesh in the near term due to fewer L/C restrictions. This is expected to provide India with potential benefits while Bangladesh may face more constraints.

Around 39,840 LDT was beached at Alang port last week, with MSC Nicole (14,305 LDT) arriving at Alang.

Bangladesh market stagnant

The local market in Bangladesh has remained stagnant. Prices of vessels have significantly dropped $10/t as a result of the unavailability of L/Cs. The market is anticipated to remain sluggish during Eid.

Total tonnage reported last week at Chattogram port was 55,524 LDT, out of which two vessels arrived with a total tonnage of 12,983 LDT, and six vessels of tonnage 42,541 LDT were beached.

Pakistan: Crisis continues

The Pakistani market remained subdued as the Eid holidays approached. Lack of activity persists and the current condition may change only if the political and economic crises stabilise.

Total tonnage reported at Gadani port last week was nil.