This Week 41 edition of the GMS Weekly Podcast reviews the latest developments across global ship recycling. The week was defined by geopolitical uncertainty, weakening currencies, and pressure on steel fundamentals across the sub-continent markets of India, Bangladesh, Pakistan, and Turkey.

Global Market Overview

• Global markets experienced a turbulent week as renewed Middle East tensions, a potential shift in peace negotiations, and global inflationary pressures disrupted sentiment.
• Oil prices declined further to around USD 59.81 per barrel, down nearly 18% year-on-year.
• The Baltic Dry Index gained a modest 13 points, supported by Capesize and Panamax segments, while smaller vessel earnings softened.
• Currencies across key recycling nations continued to weaken, with the Indian rupee approaching 89, the Pakistani rupee at 283.20, and the Turkish lira at 41.82 per U.S. dollar.
• Steel plate prices remained under pressure as local markets reported marginal weekly losses and limited buying activity.

 

Regional Highlights

Bangladesh:
Chattogram’s recycling market is showing early signs of revival after nearly two quarters of limited activity. A few well-priced tonnage sales, including a Capesize bulker, were completed from cash-buyer inventories as local recyclers with financing capacity stepped back in. The Taka weakened to BDT 121.55 per USD, while steel plate prices remained steady at USD 519 per ton. Optimism is building ahead of the national elections scheduled for early 2026.

India:
India continues to face declining fundamentals. Steel prices fell another USD 7 per ton to USD 391, while the rupee slipped to Rs 88.75 per USD, edging closer to the Rs 90 mark. Despite the currency pressure, activity in Alang remained strong with more than 10 vessels, totaling nearly 120,000 LDT, arriving this week. Notable deliveries included Bow Cedar and Shaurya II. India retains its position as the sub-continent’s most active recycling destination, although pricing remains the lowest among major markets.

Pakistan:
In Pakistan, the theme of the week was clear: War = 2 / HKC = 0. Despite adopting the Hong Kong Convention earlier this year, no yard has yet achieved certification. Continued regional tensions and trade tariff uncertainty are straining the economy. The Pakistani rupee weakened to PKR 283.20 per USD, and steel plate prices dropped to USD 616.80 per ton. With minimal new arrivals at Gadani, local sentiment remains subdued.

Turkey:
Turkey’s market faced further currency depreciation as the lira fell to TRY 41.82 per USD, losing another 30 basis points. While recyclers remain operational, volumes are limited as most deep-sea vessels continue heading to sub-continent yards instead of EUSRR-compliant facilities.

 

Weekly Market Sentiment

Volatility, political instability, and fluctuating currencies continue to shape the global ship recycling landscape. India holds steady as the key volume market, Bangladesh is gradually regaining activity, Pakistan remains under pressure, and Turkey continues to weaken.

Despite the challenges, recyclers and cash buyers across the region are positioning themselves for potential improvements in steel fundamentals and a steadier market outlook heading into late October.

 

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