South Asia: Indian, Bangladeshi ship recycling markets see rise in activity w-o-w; Pak struggles

• Alang buyers secure vessels at competitive prices
  
  
• Gadani sees muted deals amid economic uncertainty
  
  

This week, the ship recycling markets in India, Pakistan, and Bangladesh displayed contrasting dynamics. India and Bangladesh saw improvements, while Pakistan remained under pressure.

In Alang's shipbreaking yards in India, buyers successfully negotiated realistic prices, despite a decline below the coveted $500/light displacement tonnage (LDT) mark. Meanwhile, Pakistan's Gadani market struggled to secure sales, hindered by economic uncertainty and limited vessel availability. In Bangladesh, cautious buying activity emerged as buyers engaged with the market under strained economic conditions.

India's ship recycling market stabilises despite price declines

India's ship recycling market stabilised this week, with Alang buyers successfully securing tonnage at realistic price levels, albeit below the coveted $500/LDT. Despite lower offers, Alang remained atop the global rankings, processing around 60,000 LDT across eight ships.

Notable sales included Boss 7 (Tanzania flagged), comprising 4,712 LDT, sold at $473/LDT and Sofia 3 (Comoros flagged), consisting of 3,732 LDT, at $455/LDT. Though the Indian rupee dipped to INR 84.18, holiday celebrations kept market fundamentals steady.

Although fuel prices rose and inflation is expected to follow suit, India's shipbreaking yards remained competitive on global pricing.

The total tonnage received at Alang Port this week was 59,043 LDT. In the previous week, 43,171 LDT were received.

IMF bailout setbacks, currency issues limit vessel purchases in Pak

Pakistan's ship recycling market struggled, with Gadani buyers showing limited interest amid fierce competition from neighbouring Bangladesh and India. Only a small amount of tonnage arrived for recycling, and local port activity is expected to dwindle further.

Despite rising local steel prices and a slight strengthening of the Pakistani rupee to PKR 277.29, economic concerns continue to hinder market participation. With the IMF bailout facing setbacks and the availability of the US dollar tightening, recyclers are holding back from bidding, awaiting more favourable conditions before committing to purchases.

The total tonnage received at Gadani Port this week was 22,746 light displacement tonnage (LDT). Notably, no tonnage was received at Gadani Port in the previous week.

Bangladesh ship recycling market shows flickers of activity despite economic strain

Bangladesh's ship recycling market saw a slight uptick in activity this week, with buyers cautiously returning despite weak overall sentiments and prices dipping near $450/LDT. Notable sales included the Indonesian-built feeder container Armada Sejati, comprising 3,322 LDT, at $470/LDT and the bulk carrier Fatma Sari (Turkish flagged), consisting of 8,012 LDT, at $488/LDT, including quality-related premiums.

However, local recyclers remained largely uncompetitive due to stagnant steel plate prices and a depreciating taka, which touched BDT 119.99. As Bangladesh's GDP forecast drops and political instability continues, significant improvements in the recycling market seem unlikely in the near term.

The total tonnage received at the Chattogram Port this week rose to 18,860 LDT compared to 12,141 LDT in the previous week.