Week 14 of 2026 sees global ship recycling markets enter the second quarter under continued pressure, with many of the same structural challenges from Q1 still firmly in place. Across the main recycling destinations of Bangladesh, India, Pakistan, and Turkey, recyclers remain active, but the persistent shortage of workable end-of-life tonnage continues to limit transaction volumes.
The broader macroeconomic and geopolitical environment remains the key driver. The ongoing conflict in the Middle East continues to support oil prices above USD 100 per barrel, sustaining strong freight earnings and delaying demolition decisions as shipowners keep older vessels trading longer. Mixed U.S. Dollar movements and uneven steel plate pricing across the subcontinent added further uncertainty to bidding sentiment this week.
Bangladesh continues to lead the market with firm post-Eid momentum. Chattogram recyclers remain actively engaged, supported by improving Letter of Credit approvals and slightly stronger local steel prices. Pricing levels strengthened further to around USD 455 per LDT for dry bulk, USD 475 per LDT for tankers, and USD 485 per LDT for containers. However, activity remains tempered by ongoing caution around sanctions exposure, particularly with the two OFAC-linked VLCCs still unresolved at anchorage, reinforcing stricter due diligence across the market.
India saw one of the more notable shifts this week through a sharp rebound in the Indian Rupee following central bank intervention measures. This provided some support to local recyclers’ purchasing power, alongside a modest improvement in steel plate prices. However, operational challenges, including LPG supply disruptions impacting steel mills, and the continued lack of incoming tonnage, remain key constraints. Alang continues to hold its position as the leading compliant recycling destination, with over 110 HKC-certified yards, but this structural advantage remains underutilized due to limited vessel inflow.
Pakistan enters Q2 on firmer footing, with steel prices stabilizing around PKR 175,000 per ton and the Pakistani Rupee holding steady. Gadani has strengthened its position as the second most competitive recycling destination, supported by improving sentiment, growing HKC-compliant capacity, and geographic proximity to Gulf-sourced tonnage. While underlying conditions have improved, sustained progress remains dependent on consistent vessel supply and stable steel fundamentals.
Turkey remains the weakest of the major recycling destinations. The Turkish Lira continued its depreciation to record lows, further reducing the competitiveness of local pricing, now around USD 265–285 per LDT depending on vessel type. Domestic steel demand remains subdued, and broader economic pressures continue to weigh on activity. While Turkey retains a niche role through EU-approved recycling yards, it remains uncompetitive for mainstream commercial tonnage.
Port activity during the week reinforced the broader market narrative. Alang recorded some deliveries, including a larger offshore unit, while Chattogram saw limited smaller arrivals and Gadani reported no new vessels. Across all destinations, the message remains consistent: buyer appetite is present, but vessel supply continues to lag.
As the second quarter begins, the ship recycling market remains focused on one central question - whether a pre-monsoon release of older vessels will materialize, or if strong freight markets will continue to delay demolition activity.