In this Week 51 edition of the GMS Weekly Podcast, Ingrid and Henning review global ship recycling market conditions across Bangladesh, India, Pakistan, and Turkey as December volatility continues into year-end.
Freight markets softened further this week, oil prices remained low, and currency movements added pressure across key recycling destinations. Despite easing freight rates, the supply of demolition candidates remains limited, keeping recyclers cautious as the industry closes out a landmark year marked by the entry into force of the Hong Kong Convention (HKC).
Global sentiment remained soft this week. The Baltic Dry Index declined further, reflecting weaker freight earnings across major vessel segments. Oil prices rose slightly but stayed at relatively low levels, offering limited support to broader shipping sentiment. Combined with currency fluctuations and uneven steel pricing, overall demolition bids remained under pressure.
The ongoing shortage of recycling candidates continues to define market behavior, even as some fixtures and arrivals begin to surface across sub-continent beaches.
Bangladesh remains the top-ranked recycling destination, but pricing weakened again this week. Local steel plate prices dropped sharply to around USD 485 per ton, weighing heavily on recycler margins and bid levels. A firmer U.S. Dollar added additional pressure as the Taka weakened.
While progress on HKC compliance remains a positive structural development, political uncertainty and approaching elections continue to cloud short-term sentiment. Recent arrivals have reduced immediate appetite for fresh tonnage, keeping buyers selective.
India remains the weakest market in pricing terms, with many indications hovering below USD 400 per LDT. However, fundamentals showed mixed improvement this week. The Indian Rupee strengthened, and local steel plate prices rebounded, offering short-term relief for recyclers.
Despite these supportive signals, overall activity remains cautious as buyers balance improving inputs against limited demand visibility and competitive pressure from neighboring markets.
Pakistan continues to show improving fundamentals. Local steel plate prices remain the strongest in the region, supporting recycler confidence. Currency levels were relatively stable during the week.
Progress toward HKC compliance remains encouraging, although limited certified capacity and delivery delays continue to create friction for incoming tonnage. Buyer interest is present, but operational certainty remains key.
Turkey remains largely sidelined. Local recyclers face ongoing restrictions and limited tonnage availability. The Turkish Lira weakened again, although easing inflation may provide some operational cost relief during the winter period.
Without a change in operating conditions, Turkey remains a secondary option despite steady pricing indications.
Overall sentiment remains cautious heading into year-end. Key drivers include softer freight, uneven steel plate pricing, currency pressure, and limited availability of workable recycling candidates. HKC compliance continues to reshape the competitive landscape, with additional certifications expected across 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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