India experienced a moderate start to 2024, with signs of improvement over time. However, competition from neighboring countries like Bangladesh and Pakistan, coupled with election-related uncertainties, created a challenging environment for the Indian economy. Despite these hurdles, ship recycling yards in Alang continued their operations. Rising steel plate prices and competitive bids made Alang attractive to investors, even amidst the political and economic uncertainties.
Pakistan's shipbreaking market experienced a year of both positive developments and challenges in 2024. Early in the year, improved post-election LC conditions and rising tonnage allowed Pakistan to outbid India on shipbreaking prices. However, weak steel plate prices, a sluggish rupee, and factors like monsoon season and Ramadan slowed down activity. Additionally, IMF loan requirements and restrictive budgetary policies created financial constraints and further pressures, dampening market momentum.
By July, Pakistan’s shipbreaking market is expected to demonstrate resilience in a challenging regional landscape; Gadani recyclers’ selective approach and a slight strengthening of the Pakistani Rupee are supporting an outperformance of the previous year’s volume. Despite the persistent decline in tonnage and limited new arrivals, the market is projected to maintain its ground and sustain a cautious optimism as neighboring markets struggle.
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