Week 21 of 2026 marks a significant turning point in global ship recycling markets as the strongest reopening signal yet emerges from the Strait of Hormuz. Three supertankers transited the Strait for the first time since March, while President Trump said the United States was in the final stages of talks with Iran. Brent crude fell more than 5% to around USD 105 per barrel, while WTI moved below USD 100.
However, the timing remains critical for the ship recycling industry. With only around one week left before the practical monsoon slowdown across the sub-continent, improved passage signals may have arrived too late to release meaningful recycling tonnage into the market.
Freight markets remain supportive for owners to continue trading older vessels. The Baltic Dry Index closed around 3,005 after peaking above 3,092 earlier in the week. Capesize earnings remained above USD 40,000 per day, while Panamax earnings strengthened to more than USD 22,000 per day. Although freight has eased from recent highs, earnings remain strong enough to keep older bulkers trading rather than heading for recycling.
Bangladesh continues to show strong operational stability. The Bangladeshi Taka held around 122.87 against the U.S. Dollar, while the Letter of Credit pipeline remained operational for a sixth consecutive week. Bangladesh’s April CPI rose to 9.04%, showing that inflationary pressure has reached Chattogram, but the impact remains contained compared with Pakistan and Turkey. Local steel plate prices softened to around USD 543 to USD 549 per ton, while Chattogram remains active and competitive.
India faced another week of currency pressure as the Indian Rupee decisively broke above 96, touching a fresh all-time low near 96.97 against the U.S. Dollar. Despite the currency weakness, India’s April CPI remained calm at 3.48%, comfortably within the RBI’s target range. Alang remains the lowest-priced sub-continent destination, while continuing to benefit from its strong Hong Kong Convention-compliant yard base.
Pakistan continues to consolidate its market position. The Pakistani Rupee held firm around 278.63 against the U.S. Dollar, making it the only major sub-continent currency that has not made a new low since the early-April ceasefire. Local steel prices remained strong, keeping Gadani in one of the firmest pricing positions globally, supported by currency stability, the State Bank’s earlier rate hike, and continued regional proximity advantages.
Turkey remains structurally separate from the sub-continent markets. The Turkish Lira weakened to another record low near 45.58 against the U.S. Dollar, while inflation remains elevated. Aliaga continues to focus mainly on EU-regulated recycling candidates, where compliance requirements outweigh the significant price gap with South Asian recycling destinations.
The key message for Week 21 is clear: the passage through Hormuz may be opening, but the ship recycling window is closing. Brent has eased, diplomacy has accelerated, and some tanker movements have resumed, but the practical monsoon deadline is now too close for a meaningful release of recycling supply. Strong freight earnings, limited candidate availability, currency divergence, and unresolved geopolitical risk continue to shape the market outlook.
This episode covers:
Global ship recycling market trends
Strait of Hormuz reopening signals
Brent crude and WTI price movements
Baltic Dry Index and dry bulk freight strength
Capesize, Panamax, Supramax and Handysize earnings
Vessel recycling supply shortages
Bangladesh market conditions and inflation trends
India Rupee weakness, CPI stability, and Alang pricing
Pakistan Rupee strength, Gadani pricing, and market positioning
Turkey inflation, Lira weakness, and Aliaga’s EU-regulated focus
Steel plate pricing trends
Hong Kong Convention-compliant recycling yards
Monsoon impact on ship recycling markets
Cash buyer sentiment and vessel pricing outlook
Key Market Developments This Week
Three supertankers crossed the Strait of Hormuz for the first time since March
U.S.–Iran talks were described as being in the “final stages”
Brent crude eased more than 5% to around USD 105 per barrel
WTI moved below USD 100 per barrel
Baltic Dry Index closed around 3,005 after peaking above 3,092
Capesize earnings remained above USD 40,000 per day
Panamax earnings strengthened above USD 22,000 per day
Bangladesh Taka remained stable around 122.87 against the U.S. Dollar
Bangladesh April CPI rose to 9.04%
Bangladesh LC pipeline remained operational for a sixth consecutive week
Indian Rupee touched a fresh all-time low near 96.97 against the U.S. Dollar
India April CPI remained controlled at 3.48%
Alang remained the lowest-priced sub-continent recycling destination
Pakistan Rupee held firm around 278.63 against the U.S. Dollar
Gadani pricing remained among the strongest globally
Turkish Lira weakened to a fresh record low near 45.58 against the U.S. Dollar
Aliaga remained focused on EU-regulated recycling candidates
Monsoon window narrowed to approximately one week
Recycling tonnage supply remained limited despite stronger passage reopening signals
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