In this Week 46 edition of the GMS Weekly Podcast, titled Desperate Downers, global ship recycling markets continue to struggle through a volatile end to 2025.
Falling steel prices, a strong U.S. Dollar and limited tonnage supply kept recyclers cautious across South Asia while the Baltic Dry Index posted further gains.
Oil prices slipped to about USD 59.50 per barrel after a Ukrainian drone strike on Russia’s main refinery at Novorossiysk, adding another layer of uncertainty to energy markets.

The U.S. Dollar strengthened across key markets, reducing purchasing power for buyers, while steel-plate prices fell in India, Bangladesh, and Pakistan.
Most transactions are closing near USD 400 per LDT, and smaller or less-preferred vessels are achieving prices in the high USD 300s.
Freight rates remain firm, keeping end-of-life supply constrained despite occasional arrivals of vintage tonnage.

Chattogram recorded a notable increase in activity, with seven vessels totalling about 66,000 LDT arriving this week, including a 21,000-ton bulk carrier.
Even with the arrivals, sentiment is restrained. Political tension ahead of the February 2026 elections, tariffs near 30%, and a weaker Taka (BDT 122.35 per USD) continue to affect recyclers.
Local steel-plate prices slipped another USD 1 per ton, signalling ongoing caution through year-end.

The Alang market remains subdued but stable. India continues to benefit from its wide base of HKC-compliant yards, although demand is muted.
Smaller dry units are only just touching USD 400 per LDT. The Rupee eased to about Rs 88.70 per USD, while steel-plate prices improved slightly by USD 4 per ton.
With global freight markets still strong, most owners prefer to trade vessels longer rather than recycle them, keeping supply tight.

After moderate progress earlier in the quarter, Gadani slowed again with no new vessel arrivals this week. The first HKC-approved yard is still pending.
Local steel-plate prices fell by USD 13 per ton to below USD 600, and the PKR weakened to about 282.80 per USD.
Cheap Iranian steel imports and inflationary pressure continue to challenge local recyclers as the year closes.

Aliaga stayed quiet but steady, with price levels between USD 260 and 280 per LDT.
The Turkish Lira weakened beyond TRY 42.30 per USD, creating additional cost pressure.
Yards remain operational, but margins are thin as they face high input costs and limited inflow of vessels.

Across South Asia, recyclers are contending with weak fundamentals, soft steel values, and currency instability.
Attention now shifts to 2026 for potential stabilization and new opportunities in the global ship recycling market.

For full regional data, vessel rankings, and steel price trends, download the complete GMS Weekly Report on the GMS mobile app and GMS website.
 

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