South Asia: Imported ship-breaking prices stable w-o-w; market remains positive in India

In the ship recycling markets of South Asia, India remained the primary beneficiary of recent positive trends, with strong demand from Alang buyers leading to increased sales and deliveries. Pakistan has also been positive in terms of pricing but the trade activities have slowed down. Conversely, Bangladesh has faced inactivity, lower prices, and weak demand, resulting in an inventory accumulation.

India

More sales and deliveries have been confirmed in the Indian ship recycling market, driven by strong demand from Alang buyers. Despite fluctuations in steel prices during the week and the Indian Rupee stabilising around INR 82 against the U.S. dollar, the market fundamentals have been consistently positive in the past month. As per sources, a PCC from Japan the FORESIGHTER, secured a good deal at $512/LDT for an 'as is' Japan delivery, reflecting the trend of competitive Alang deals. The anchorage situation in Alang is similar to Chattogram, but Alang has more LDT at the waterfront, ensuring a well-stocked inventory during and after the expected Diwali slowdown.

The total tonnage received at Alang last week was 51,687 LDT.

Pakistan

The Pakistani ship recycling market, while not as exuberant as the Indian market, has seen a successful few months, marking a return to buying after nearly a year of inactivity. Around, 5 - 6 Panamax bulkers were sold and beached or delivered to Gadani recyclers. These recyclers managed to secure local letters of credit (LCs) amid challenging financial circumstances, and their efforts have begun to yield results, contributing to the recent improvements in the market. However, the market has seemed to slow down currently with not many trade activities reported in recent times.

The total tonnage received at Gadani last week was 22,467 LDT.

Bangladesh

The ship recycling market in Bangladesh has experienced a disappointing week, with prices significantly lower than those in other subcontinent markets. In response to the poor steel plate prices, the Bangladesh Ship Breakers & Recyclers Association (BSBRA) suspended all sales of ship steel from local yards to domestic steel mills, resulting in an inventory backlog at local yards. Although the BSBRA has decided to resume the sale of plates, little to no sales have occurred, leading to the closure of many smaller domestic mills due to low demand, as per secondary sources.

Although market fundamentals influence pricing, the Bangladeshi taka has shown stability despite briefly crossing BDT 110 during the week. At Chattogram anchorage, poor offers have led to fewer local arrivals and more beachings of older, smaller LDT vessels. The future performance of the Chattogram market remains uncertain, but based on its current state, it is expected to remain relatively quiet in the upcoming months as well.

The total tonnage received at Gadani last week was 34,219 LDT.