In this Week 49 edition of the GMS Weekly Podcast, Ingrid and Henning review another quiet but eventful period in the global ship recycling market as the year moves into the festive slowdown. Supply of demolition candidates remains very limited, while steel prices, currency movements, and Hong Kong Convention progress continue to shape buying sentiment across Bangladesh, India, Pakistan, and Turkey.
Global Market Overview
Global recycling markets faced a softer tone in early December. The Baltic Dry Index slipped about 3 percent, with capesize rates down roughly 4.4 percent and panamax earnings lower by around 1.4 percent. Oil prices were largely unchanged and closed near 59 dollars and 70 cents per barrel.
Local steel plate prices across the main Indian subcontinent recycling destinations fell by just under 5 dollars per ton, which put additional pressure on buyer sentiment. Currencies also moved against recyclers. The Indian Rupee and Bangladeshi Taka weakened further against the US dollar, while the Turkish Lira continued to rank among the poorest-performing currencies worldwide.
Despite these headwinds, Hong Kong Convention compliance advanced. A total of 23 yards across the subcontinent have now obtained HKC certification in 2025, including Pakistan’s first approved yard in Gadani, signalling sustained investment in safer and greener recycling capacity.
Bangladesh
Bangladesh remained the highest priced market, although activity slowed after a strong run of purchases in recent weeks. Most working yards at Chattogram have already taken at least one unit, which has reduced the urgency to chase new tonnage at the current levels.
The Bangladeshi Taka weakened to around 122.35 per US dollar and local steel plate prices slipped by about 5 dollars to approximately 502 dollars per ton. These softer fundamentals, combined with the earlier buying spree, resulted in very few fresh offers and no notable new arrivals at the waterfront.
Bangladesh continued to make rapid progress on Hong Kong Convention compliance. Since March, 22 yards have secured HKC accreditation, firmly positioning the country as a key destination for compliant recycling. Domestic inflation is expected to stay close to 8 percent and political focus remains on the transition from the interim government after elections scheduled for early 2026.
India
India experienced another subdued week at Alang. Strong freight earnings and a growing share of vessels tied up in sanctions or restricted trades are keeping potential candidates on the water rather than heading for demolition. No significant new arrivals were reported during the week.
The Indian Rupee weakened again to about 89.96 per US dollar and local steel plate prices slipped to roughly 387 dollars per ton. These levels place India at the bottom of the regional price rankings. Buyers stayed cautious, concentrating on selective smaller deals and waiting for clearer signals from both the steel and currency markets.
India remains the most mature Hong Kong Convention story in the region, with many Alang yards having operated under HKC standards for years. However, the pricing disadvantage relative to neighboring markets has limited its ability to secure mainstream tonnage during this phase of the cycle.
Pakistan
Pakistan’s main structural development has been the confirmation of its first Hong Kong Convention approved yard in Gadani. This milestone adds Pakistan to the group of compliant recycling destinations and is expected to encourage further upgrades at neighbouring facilities over the coming months.
Market activity, however, was quiet. Gadani’s anchorage has seen very few fresh candidates and end buyers remain price sensitive. Local steel plate prices declined by nearly 5 dollars per ton to around 575 dollars per ton, pressured by cheaper imports from Iran.
The Pakistani Rupee offered a rare positive note, firming slightly to approximately 280.42 per US dollar. Even so, the combination of weaker steel prices and limited HKC capacity meant that overall buying interest stayed muted, with recyclers focusing on improving yard standards and monitoring wider market sentiment.
Turkey
The Turkish recycling market delivered one of the few upbeat stories of the week. Import steel prices and local plate prices both gained about 10 dollars per ton, allowing Aliaga recyclers to lift their offers by a similar amount.
Indicative prices into Turkey are now close to 270 dollars per lightweight ton for bulk carriers, 280 dollars for tankers and 290 dollars for container vessels. These levels still trail the Indian subcontinent, but the price gap narrowed slightly compared to previous weeks.
The Turkish Lira weakened further to around 42.55 per US dollar. Currency volatility continues to be a major challenge for buyers, who must factor potential swings into their pricing calculations even as local steel conditions improve.
Market Sentiment
Across Bangladesh, India, Pakistan and Turkey, the ship recycling market entered December with a clear shortage of workable tonnage, softer steel prices and mixed currency trends. Bangladesh held onto the top position in the GMS price rankings, followed by Pakistan, with India remaining at the bottom of the table and Turkey improving but still lagging the subcontinent.
Most end buyers are approaching new negotiations carefully and are prepared to sit on the sidelines rather than chase limited vessels at uneconomic numbers. At the same time, ongoing investment in Hong Kong Convention compliant yards across the region is laying the groundwork for a more sustainable and transparent recycling industry.
As 2025 draws to a close, market participants are watching for signs that 2026 will bring more stable fundamentals, greater recycling volumes, and better alignment between freight earnings, currency performance and scrap steel prices.
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