The global ship recycling market continues to experience a cautious start to 2026 as geopolitical uncertainty, currency volatility, and uneven steel plate pricing weigh on buyer confidence across major recycling destinations.
Freight markets showed early signs of stabilization after recent declines, while oil prices remained below the USD 60 per barrel level, offering little support to overall sentiment. Currency movements remained a dominant factor, with the U.S. Dollar strengthening against most ship recycling currencies and limiting recyclers’ ability to improve price levels.
Against this backdrop, recycling prices across the sub-continent remained under pressure, with dry bulk indications frequently discussed below the USD 400 per LDT threshold. Buyer sentiment remains selective, with strong interest focused primarily on larger LDT units.
Bangladesh returned to the top of the market rankings during the week, supported by renewed appetite for large LDT vessels including tankers, LNG carriers, and sizable bulkers.
Despite softer fundamentals, Chattogram recyclers continued to demonstrate resilience at the bidding tables. Local steel plate prices declined further during the week, while the Bangladeshi Taka weakened beyond the BDT 122 level against the U.S. Dollar. Inflation also edged higher, and political uncertainty increased ahead of upcoming national elections.
Even so, tier-one buyers remained competitive for the right tonnage, although interest in smaller and poorer-condition vessels remained limited, with such units increasingly diverted toward western destinations.
India experienced another volatile trading week, with early-year price gains quickly reversing as domestic fundamentals weakened.
Steel plate prices recovered modestly during the week following sharp declines previously, while the Indian Rupee depreciated again, approaching psychologically sensitive levels near Rs. 91 to the U.S. Dollar. This combination continued to unsettle local recyclers and limit aggressive bidding.
Physical activity at Alang improved slightly, with three vessels arriving during the week, including a tanker exceeding 16,000 LDT. Domestic inflation has begun moving out of extremely low territory, which may help stabilize sentiment in the coming weeks. For now, pricing remains highly reactive and direction remains uncertain.
Pakistan maintained relatively firm market positioning despite unchanged pricing levels.
End buyers remain eager to acquire tonnage as empty plots persist, yet actual deliveries continue to lag. No new vessel arrivals were reported during the week, reflecting ongoing supply shortages, DASR procedural delays, and limited availability of HKC compliant recycling yards.
A positive development emerged with the approval of Pakistan’s first Hong Kong Convention compliant yard, with additional certifications expected in the coming months. While this represents meaningful structural progress, near-term throughput remains constrained.
Turkey recorded signs of renewed activity following a prolonged quiet period.
Several European RoRo vessels were delivered to Aliaga, providing much-needed momentum for local recyclers. This occurred despite higher import steel plate prices and continued depreciation of the Turkish Lira.
Local buyers have largely maintained steady price indications, positioning cautiously for the possibility of improved activity during the first quarter of 2026.
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 prevailing market theme remains one of caution and selectivity. While Bangladesh currently leads pricing for large LDT vessels, overall fundamentals remain fragile amid currency weakness, steel price volatility, and limited supply.
India continues to struggle with unstable domestic conditions. Pakistan remains financially capable but operationally constrained. Turkey shows early signs of recovery following recent deliveries.
As early 2026 unfolds, shipowners with aging fleets continue to monitor whether price stability near USD 400 per LDT can be sustained amid ongoing global uncertainty.
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