In this week’s ship recycling market podcast, Ingrid and Henning analyze a volatile yet constructive Week 8 across the global demolition sector as freight, oil, steel prices, currencies, and inflation trends moved sharply before partially retracing by the end of the week.
Despite Chinese New Year holidays, recycling supply surprised the market with approximately 151,000 light displacement tons delivered or arrived across India, Bangladesh, and Pakistan. The increase in visible tonnage provided renewed momentum for subcontinent buyers and pushed pricing for select well conditioned vessels back toward the mid USD 400s per LDT.
The Baltic Dry Index rebounded 1.2% this week, led by a 1.7% increase in Capesize rates and a 1.2% gain in Panamax earnings. Supramax performance eased slightly but overall freight sentiment improved.
Oil prices climbed above USD 66 per barrel before easing back toward USD 65.9 by week’s end. Markets reacted to renewed geopolitical tensions and global tariff uncertainty, contributing to volatility across commodity linked sectors including steel and demolition pricing.
Bangladesh reclaimed the number one position in the subcontinent rankings with improving sentiment and aggressive pricing for larger LDT and well maintained vessels.
Local steel plate prices jumped approximately USD 16 per ton during the week, while the Bangladeshi Taka strengthened modestly against the US Dollar. Anchorage activity included the delivery of a Cape bulker and a nearly 27,000 LDT LNG unit awaiting completion, with additional LNG candidates reportedly in discussion.
Inflation in Bangladesh increased slightly from 8.49% to 8.58%, adding some cost pressure, but overall sentiment improved following recent political stability and renewed infrastructure expectations.
Pakistan relinquished the top ranking position but maintained the strongest steel fundamentals in the region. Local steel plate prices held near USD 594 per ton, retaining a significant premium over neighboring markets.
The Pakistani Rupee strengthened approximately 0.40% against the US Dollar. Anchorage activity improved with five vessels visible at Gadani, reflecting renewed buyer confidence following the halt of cheap Iranian steel imports.
Inflation trends remain volatile in Pakistan, but current fundamentals continue to support competitive pricing.
India saw local steel plate prices slip below the psychological USD 400 per ton level, ending the week near USD 399. The Indian Rupee weakened slightly to around INR 90.76, while inflation accelerated to approximately 2.75% in January.
Although Alang buyers are less competitive on larger LDT bulk units, India continues to absorb specialist and offshore vessels and retains the highest concentration of Hong Kong Convention compliant yards in the region. Capacity and regulatory infrastructure remain long term advantages for the market.
Documentation requirements under the Hong Kong Convention continue to align across Bangladesh, Pakistan, and India. The requirement for International Ready for Recycling Certificates is now standardized across subcontinent destinations, improving transparency and process stability for incoming vessels.
With Ramadan now underway, reduced working hours are expected across major recycling destinations. While pricing momentum has improved, operational pace may slow in the near term.
Bangladesh Improving
Dry Bulk approximately USD 425 per LDT
Tankers approximately USD 445 per LDT
Containers approximately USD 455 per LDT
Pakistan Steady
Dry Bulk approximately USD 420 per LDT
Tankers approximately USD 440 per LDT
Containers approximately USD 450 per LDT
India Steady
Dry Bulk approximately USD 410 per LDT
Tankers approximately USD 430 per LDT
Containers approximately USD 440 per LDT
Turkey Steady
Dry Bulk approximately USD 270 per LDT
Tankers approximately USD 280 per LDT
Containers approximately USD 290 per LDT
Week 8 demonstrates how quickly demolition markets react when supply reappears. With 151,000 LDT entering subcontinent yards, pricing strengthened across key destinations and Bangladesh returned to the leading position.
However, volatility in steel prices, inflation trends, tariff uncertainty, and reduced Ramadan working hours suggest that momentum will depend heavily on continued vessel availability.
For shipowners, cash buyers, brokers, recycling yards, and maritime investors, monitoring steel fundamentals, currency movements, and supply flow remains critical in the weeks ahead.
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