All Eyes on Alang: LNG Units and Pre-Diwali Buying to Shape September Market: STAR ASIA

All Eyes on Alang: LNG Units and Pre-Diwali Buying to Shape September Market: STAR ASIA

Alang, India

The Alang ship recycling market remained stable this week, with a gradual flow of vessels heading toward Alang. The Indian hub continues to stand out as the only viable option for end-of-life tonnage, given its balanced pricing and steady demand.

Recyclers noted that several vessels are being lined up for negotiations in the coming weeks, with particular attention on the larger LNG segment. Market observers are looking closely to see how pricing levels and competition unfold for these units.

On the domestic front, ship scrap prices held steady, supported by an uptick in demand as the monsoon season nears its end. Looking ahead, September is expected to bring the traditional pre-Diwali buying cycle, as steel demand typically strengthens with the launch of new infrastructure and construction projects during this period.

Anchorage & Beaching Position (AUGUST 2025)

Chattogram, Bangladesh

Once considered among the top-performing ship recycling destinations, Chattogram markets have now slumped under the weight of political instability and faltering demand. Price differentials against Alang have widened sharply, with gaps of nearly US$30–40/ton reported.

Many recyclers in these regions have stepped back from active buying, choosing instead to assess the evolving domestic situation. Local scrap prices for ships have declined to depressed levels and remain stagnant, with no signs of a near-term recovery.

Overall, sentiment remains weak, and recyclers see little indication of a bounce back in the immediate future.

Anchorage & Beaching Position (AUGUST 2025)

Gadani, Pakistan

Pakistan’s recycling market remains eager for new tonnage, though activity is limited, with only three yards currently open to purchasing larger vessels. Recyclers that have secured ships are focusing on demonstrating their ability to recycle in line with the Hong Kong Convention (HKC) guidelines, as they work toward securing the necessary certifications.

Overall, the market is holding steady, supported by the availability of alternative ferrous scrap and semi-finished steel products being imported at discounted prices. This inflow has helped keep domestic steel mills well supplied with feedstock, cushioning the market against the typical ship scrap requirements.

Anchorage & Beaching Position (AUGUST 2025)

Aliaga, Turkey

The Turkish Lira slipped further this week, easing by 32 basis points to close at TRY 40.90 against the U.S. dollar, hovering precariously near the TRY 41 mark.

On the macro front, however, the government’s policy measures appear to be yielding results. Inflation, which stood at nearly 61.8% in July 2024, has fallen sharply to around 33.5% a year later. While this easing has offered much-needed relief to households and helped shift public attention away from the currency’s volatility, the impact on the ship recycling market in Aliaga has been more severe.

Local recyclers report that offerings are expected to soften further in the coming weeks, leaving the market short of workable tonnage. For now, activity remains muted, and tough times continue with little on the lot available for buyers.

Author: shipping inbox

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