In this Week 2 edition of the GMS Weekly Podcast, global ship recycling markets remain volatile as geopolitical risks, oil prices, steel movements and currency shifts continue to reshape buyer sentiment across the sub-continent. Ryan and Grace review how USD 400 per LDT has emerged as the key price level for shipowners while recycling destinations reposition themselves ahead of Chinese New Year.
The opening weeks of 2026 are being driven by heightened geopolitical uncertainty, rising oil prices and weak freight sentiment. The Baltic Index fell again while oil traded near USD 60 per barrel, increasing operating costs across shipping. Currency movements played a central role this week, with the U.S. dollar strengthening against India and Turkey but easing against Pakistan and Bangladesh. Steel prices became the main destabilizing factor, with India losing almost all of its recent gains as plate prices slid back toward USD 400 per ton.
Against this backdrop, recycling prices remained supported near USD 400 per LDT, but buyer confidence weakened as volatility increased.
Bangladesh rebounded strongly this week and returned to the top of the market rankings. Chattogram buyers firmed their bids with indicative levels around USD 400 per LDT for bulkers, USD 420 for tankers and USD 430 for containers. Political unrest ahead of national elections created uncertainty, while limited vessel supply and banking delays restricted transaction volume. The taka held near 122.26 per U.S. dollar and steel plate prices reopened around USD 500 per ton.
Chattogram reported deliveries totaling 39,560 LDT, including an LNG carrier, making it the only active recycling port this week.
India reversed sharply after last week’s rebound. Steel prices fell from above USD 420 to near USD 400 per ton, while the rupee weakened to 90.21 per U.S. dollar. Alang buyers turned cautious, and price indications slipped to around USD 380 for bulkers, USD 400 for tankers and USD 410 for containers. Supply remains thin, with only 1 vessel of about 2,556 LDT arriving and several more waiting offshore.
Volatility in steel and currency continues to limit India’s ability to price aggressively despite improving port activity.
Pakistan remains the strongest market on fundamentals. Steel prices closed near USD 586 per ton and the rupee strengthened to 280.12 per U.S. dollar. Despite this, Gadani saw no vessel arrivals for the second consecutive week. Limited HKC compliant capacity and ongoing DASR certification issues continue to restrict throughput. Buyers remain well capitalized and ready to acquire tonnage, but execution remains the key bottleneck.
Turkey remains subdued. The Turkish lira weakened further to 43.14 per U.S. dollar and Aliaga activity stayed limited. Regulatory pressure and currency losses continue to weigh on local bids, leaving Turkey well behind sub-continent pricing.
Bangladesh: Bulker 400 | Tanker 420 | Container 430
Pakistan: Bulker 390 | Tanker 410 | Container 420
India: Bulker 380 | Tanker 400 | Container 410
Turkey: Bulker 270 | Tanker 280 | Container 290
The key theme for Week 2 of 2026 is tension between firm price support near USD 400 and weakening fundamentals driven by steel volatility and geopolitical risk. Bangladesh leads the market on pricing, Pakistan remains financially strong but capacity constrained, India struggles with falling steel and a weak rupee, and Turkey stays sidelined. With Chinese New Year approaching and supply still limited, owners with ageing vessels are closely watching whether pricing stability can hold in the weeks ahead.
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