In this Week 48 edition of the GMS Weekly Podcast titled Stumped, Yet Primed, global ship recycling markets continued to face weakening fundamentals heading into the final month of 2025. Steel plate prices declined across Bangladesh, India, Pakistan and China. The US dollar weakened in all major South Asian recycling destinations except Turkey, which saw another week of local currency pressure. Freight markets strengthened again. The Baltic Dry Index rose by 3.2%, reaching its highest level since December 2023. Oil prices remained soft and closed near 59 dollars per ton, about 14% below the same period last year.
Supply of demolition candidates remained limited as owners continued trading vessels because of profitable freight earnings. Many of the units seen this week were smaller or lower-quality ships priced below 400 dollars per lightweight ton, contributing to a multi-tiered pricing environment. Good-quality vessels capable of achieving higher levels remain scarce.
The market continued to struggle with weaker steel prices, fluctuating currencies, and limited yard activity. Steel declined across the subcontinent. The US dollar lost ground in Bangladesh, India and Pakistan. Turkey continued to face currency depreciation. Freight gains kept recycling supply tight as more owners opted to extend trading life rather than recycle. Regulatory pressure also remained evident as shadow fleet monitoring tightened.
A significant structural milestone occurred in Pakistan, where the country’s first Hong Kong Convention compliant recycling yard received formal approval. This development positions Pakistan to compete more effectively for compliant tonnage as additional yards complete their upgrades in the months ahead.
Bangladesh remained the highest-priced market. Indicative levels held at about 410 dollars per lightweight ton for bulkers, 430 dollars for tankers and 440 dollars for container vessels. Even with relatively strong pricing, domestic fundamentals weakened. Local steel plate prices fell by another 11 dollars to approximately 506 dollars per ton. The Bangladeshi Taka strengthened slightly and closed at 122.08 per US dollar.
Political uncertainty continued ahead of the February 2026 elections. Cheaper imported steel and slower local demand also pressured recyclers. However, vessel arrivals improved. Chattogram recorded five units this week, including LPG carriers, a bulker and a chemical tanker, totalling 22,459 lightweight tons. Bangladesh continued to progress with compliance, with 21 Hong Kong Convention approved yards and another nearing completion.
The Indian recycling market experienced another slow week. Most buyers remained cautious and avoided exceeding 400 dollars per lightweight ton for incoming tonnage. As a result, India fell behind Bangladesh and Pakistan for preferred vessels. Local steel plate prices fell by about 5 dollars to 390 dollars per ton. The Indian Rupee improved slightly and closed near 89.35 per US dollar.
Indicative pricing stayed around 380 dollars per lightweight ton for bulkers, 400 dollars for tankers and 410 dollars for container units. Although India recorded GDP growth of 8.2% supported by construction and manufacturing, the recycling market continues to face pressure from weaker fundamentals, higher import costs and increasing competition from HKC compliant yards in neighboring countries.
Pakistan experienced the most significant development of the week. Prime Green Recyclers received Hong Kong Convention approval from Bureau Veritas, making it the first HKC certified yard in the country. Additional yards are currently upgrading and may be approved within the next few months. This marks an important shift for Gadani as it prepares to compete at a higher level for compliant ship recycling activity.
Domestic conditions remained mixed. Steel plate prices in Pakistan fell by 7 dollars to around 579 dollars per ton. The Pakistani Rupee strengthened slightly to about 282 per US dollar. Indicative levels remained near 400 dollars per lightweight ton for bulkers, 420 dollars for tankers and 430 dollars for container vessels. No new market arrivals were recorded at Gadani this week.
The Turkish market remained stable with limited activity. Prices held around 260 dollars per lightweight ton for bulkers, 270 dollars for tankers and 280 dollars for container ships. The Turkish Lira weakened further and moved past 42.50 against the US dollar. Inflation remains high, though GDP growth continues to trend upward. Yard utilization stayed low and there were no significant changes in sentiment.
Across Bangladesh, India, Pakistan and Turkey, the ship recycling industry continues to operate against weaker steel prices, currency pressure, restricted supply, and increasing regulatory oversight. Progress in Hong Kong Convention compliance in Bangladesh and Pakistan is beginning to shape a more competitive and sustainable market structure. As the industry heads toward 2026, the question is whether returning mainstream tonnage and improving regulatory clarity can finally support a more stable demolition cycle.
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