In this Week 50 edition of the GMS Weekly Podcast, Grace and Ryan review ship recycling market conditions across Bangladesh, India, Pakistan, and Turkey as December pricing continues to soften. A stronger U.S. Dollar, weaker steel plate levels in key destinations, and limited supply of demolition candidates are keeping buyers cautious heading into year-end.
Global sentiment stayed soft this week. The Baltic Exchange Dry Index fell nearly 4% to its lowest level in close to a month, with Capes down 5.6% and Panamax down 2.1%, while smaller segments eased by about 16 basis points. Oil futures also moved lower, slipping more than 3% to around $57.61 per barrel, as oversupply concerns returned. Lower freight and oil, combined with weaker local fundamentals in recycling markets, kept overall bids under pressure.
Bangladesh remains the top-ranked destination, but pricing has weakened. Chattogram saw strong deliveries recently, including several green, Hong Kong Convention-only LNG units to select yards, plus a mini cape and an MR tanker. However, discounted green sales have weighed on sentiment across the region. Local steel plate prices fell about $9 per ton from just over $502 to the high $490s, while the local currency was nearly unchanged (down about 1 basis point). Political risk is also rising with the next General Election Day confirmed for February 12, 2026. Anchorage activity was limited this week, with only one mid-sized bulker reported.
Alang remains the lowest-placed sub-continent market. Local steel trading levels dropped more than $7 per ton to around $377, and the Rupee weakened by about 65 basis points to a record INR 90.50 per U.S. Dollar. Inflation rose from 0.25% to 0.71% as November wrapped. With steel and currency both moving against buyers, activity remains selective and price-sensitive. Any stabilization is likely to depend on how tight tonnage supply remains into early 2026.
Pakistan stayed quiet despite continued progress on Hong Kong Convention compliance. Limited HKC capacity and the added friction of DASR approvals remain key constraints. A smallish LDT unit appeared at anchorage this week and ended up in Pakistan, likely due to the economics versus a longer run to India. Fundamentals offered limited support: inflation eased slightly to 6.1% from 6.2%, steel plate levels held around $575 per ton, and the PKR stayed steady near 280.35 to the Dollar.
Turkey was steady but slow. The Lira slipped about 26 basis points to around TRY 42.70 per U.S. Dollar. Import and local steel plate prices stabilized, but the market reportedly attracted no fresh tonnage this week.
The main drivers remain weaker freight and oil, softer steel plate prices in parts of the sub-continent, currency pressure from a strong Dollar, and limited availability of workable candidates. Across most sub-continent locations, indications are trending toward the $400 per LDT range and below. Compliance progress continues, with additional HKC accreditations expected in the region into 2026.
Bangladesh: Bulker 410 | Tanker 430 | Container 440
Pakistan: Bulker 400 | Tanker 420 | Container 430
India: Bulker 380 | Tanker 400 | Container 410
Turkey: Bulker 270 | Tanker 280 | Container 290
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