Week 13 of 2026 shows global ship recycling markets reopening after the Eid holidays, but the long-anticipated pickup in activity has still not fully materialized. Across the main recycling destinations of Bangladesh, India, Pakistan, and Turkey, recyclers returned to the market with improving sentiment in some areas, yet with the same persistent problem still dominating the sector: a shortage of workable end-of-life tonnage.

The broader macroeconomic and geopolitical picture remains the key market driver. The ongoing conflict in the Middle East continues to support oil prices above USD 100 per barrel and keeps freight earnings elevated, which in turn delays demolition decisions as shipowners continue trading older vessels for longer. Mixed U.S. Dollar direction and uneven steel plate pricing across the subcontinent added further uncertainty to bidding sentiment during the week.

Bangladesh emerged from the holiday period in a notably more bullish mood. Chattogram recyclers appear to have used the Eid pause to clear inventory, settle financing, and prepare to pursue fresh tonnage more aggressively. Pricing indications remained the strongest in the subcontinent at USD 450 per LDT for dry bulk, USD 470 per LDT for tankers, and USD 480 per LDT for containers. However, activity remained limited by unresolved financing bottlenecks and continued caution around sanctions exposure, particularly with the two OFAC-sanctioned VLCCs still unresolved off Chattogram. Local steel levels stayed broadly flat through the week, offering little additional support for a sharper move in pricing.

India saw one of the more notable underlying shifts of the week through a firmer steel tone, which helped improve recycler confidence in Alang. Pricing indications remained at USD 425 per LDT for dry bulk, USD 445 per LDT for tankers, and USD 455 per LDT for containers. Yet India’s larger issue remains one of volume rather than pricing. Alang continues to face a shortage of larger workable units, even though it remains the strongest destination in the region from a compliance standpoint. More than 110 Indian yards now hold valid Statements of Compliance under the Hong Kong Convention, reinforcing Alang’s structural importance in regulated green recycling capacity.

Pakistan continued to show improving engagement and market relevance. Gadani held second place in the weekly rankings, with pricing indications at USD 440 per LDT for dry bulk, USD 460 per LDT for tankers, and USD 470 per LDT for containers. The country’s geographic proximity to Gulf tonnage and the growing presence of HKC-certified yards continue to strengthen its position as a compliant South Asian alternative. At the same time, the market is still dealing with pressure on steel economics, even as the Rupee has shown relative stability compared to recent weeks. Pakistan’s trajectory remains constructive, but still dependent on more sustained tonnage flow and clearer fundamentals.

Turkey remained the weakest of the four main recycling destinations on pricing, with indications at USD 270 per LDT for dry bulk, USD 280 per LDT for tankers, and USD 290 per LDT for containers. Aliaga continues to face structural disadvantages tied to the depreciation of the Turkish Lira, subdued domestic steel scrap demand, and limited competitiveness against South Asian pricing for mainstream commercial vessels. Turkey does retain a specialist niche through its EU-approved recycling yards, but that remains a narrower segment of the market rather than a broad-based recovery driver.

Port activity during the week also reinforced the core market narrative. Chattogram and Gadani reported no new vessels, while Alang showed only limited movement, with one LPG unit delivered and one bulk carrier arrival. The message across the board remains clear: buyer appetite is present, and in some markets improving, but vessel supply is still not arriving in sufficient quantity to convert sentiment into transactions. As the second quarter begins, the ship recycling industry remains focused on one central question -  whether a pre-monsoon release of older vessels will finally emerge, or whether high freight returns will continue to keep demolition candidates trading for longer.

 

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