In this Week 52 edition of the GMS Weekly Podcast, we conclude 2025 with a comprehensive year-end review of global ship recycling market conditions, examining pricing trends, supply dynamics, and regulatory progress across Bangladesh, India, Pakistan, and Turkey.

As a turbulent year draws to a close, ship recycling markets continue to reflect the impact of scarce vessel supply, declining steel plate prices, and volatile currency movements, while freight markets remain firm enough to delay recycling decisions. Despite softer pricing compared to early-2024 highs, meaningful progress on Hong Kong Convention (HKC) compliance across the Indian sub-continent provides a constructive foundation heading into 2026.

Global Market Overview
Overall market sentiment remained cautious in the final week of the year. Freight markets softened further, with Baltic indices declining to their lowest levels since October, reducing near-term demolition pressure. Oil prices edged higher on the week but closed December significantly lower year-on-year, offering limited support to shipping sentiment. Across key recycling destinations, steel plate prices fluctuated from modest movement to flat or inactive trading, reinforcing conservative bidding behavior. The persistent shortage of recycling candidates continues to define market activity, even as occasional arrivals surface at sub-continent beaches.

Bangladesh
Bangladesh closes 2025 as the top-ranked recycling destination, though sentiment softened toward year-end. Many active yards absorbed significant tonnage during November, leaving capacity constrained and reducing appetite for additional units in December. Local steel plate trading effectively stalled during the week, while currency movements provided little relief to recyclers. Operationally, port performance at Chattogram improved, with faster inward clearances and efficient deliveries observed. Looking ahead, Bangladesh remains relatively well positioned for 2026, although political uncertainty ahead of upcoming elections remains a key risk factor.

India
India ends the year under continued pricing pressure, remaining the weakest market in relative terms. Declining steel plate prices and a sharply depreciating rupee weighed heavily on recycler margins throughout 2025, limiting competitiveness despite available HKC-approved capacity. While broader economic indicators remain resilient, overall recycling activity stayed subdued as buyers balanced improving macro inputs against limited visibility on incoming supply. A recovery in volumes is expected only once survey and dry-dock driven candidates begin to emerge.

Pakistan
Pakistan concludes 2025 on a notably positive structural note, marked by the approval of the country’s first HKC-compliant ship recycling yard. Significant infrastructure investments and additional certifications expected in early 2026 position Gadani to play a larger role in compliant recycling markets. Domestic steel prices remained the strongest in the region despite a year-on-year decline, while currency movements stayed relatively stable. Although imports of cheaper steel products limited buying momentum at times, improving fundamentals support a more optimistic outlook for the year ahead.

Turkey
Turkey remained largely sidelined as 2025 came to a close. The Turkish lira weakened further over the year, and limited inflow of tonnage kept Aliaga recyclers operating in a subdued environment. Without a sustained increase in vessel supply, Turkey continues to function as a secondary recycling option, despite relatively stable pricing indications.

Market Sentiment & Outlook
As 2026 approaches, overall sentiment remains cautious. Freight market resilience may continue to delay recycling candidates into early 2026, with supply expected to improve gradually as surveys and dry-dock cycles return. At the same time, expanding HKC-ready capacity in Pakistan and Bangladesh is expected to reshape competitive dynamics, positioning compliant yards to capture a greater share of future recycling volumes once market conditions turn.

GMS Market Rankings – Week 52 Indications (USD per LDT)
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

For full market context, pricing direction, compliance developments, and port position updates, follow GMS Weekly for authoritative ship recycling intelligence throughout 2026.
 

Links & Resources:

Subscribe to GMS Weekly: https://www.gmsinc.net/get-in-touch?#SubscribeToGMS
GMS Mobile App: https://onelink.to/gms-app
LinkedIn: https://www.linkedin.com/company/gms-leadership
X (Twitter): https://x.com/GMS_Leadership
Instagram: https://www.instagram.com/gms__leadership