In this episode of GMS Podcasts, Nayeem Noor, VP, Business Development and Communications at GMS, speaks with Jamie Dalzell, Head of the GMS Singapore Office, in the first episode of a new series, Steel, Ships, and Recycling Values.

The series focuses on one of the most important commercial drivers of ship recycling values: steel. Episode 1 explains why steel prices sit at the centre of recycling offers, while also showing why the relationship between steel prices and vessel recycling values is not always immediate or straightforward.

The discussion looks at how recyclers assess a candidate vessel beyond a headline steel price. A recycling offer is influenced by the recoverable steel value of the ship, the quality and quantity of re-rollable steel, local resale liquidity, downstream demand, financing conditions, currency exposure, inventory levels, import pressure, and the time required to purchase, deliver, cut, process, and resell the material.

Nayeem and Jamie explain that recyclers are not only pricing today’s steel market. They are also pricing forward risk. A vessel may be bought today in U.S. dollars, but the recovered steel will usually be sold later in the domestic market and often in local currency. During that period, steel prices can move, currencies can shift, financing costs can change, and downstream demand can strengthen or weaken.

The episode also discusses why plate prices are an important reference for ship recycling, but not the only signal that matters. Recyclers also look at rebar demand, billet movement, construction activity, mill activity, trader inventories, payment cycles, and the availability of cheaper imported steel or scrap. These factors help determine whether a quoted steel price is actually executable in the market.

A key point in the conversation is that liquidity can matter as much as price. A high steel price with limited buyer activity may not support strong recycling bids, while a slightly lower price with active mills, reliable payments, and faster turnover can give recyclers greater confidence. In ship recycling, buyer confidence, finance, and execution certainty are central to the final offer.

The discussion also explains why strong steel prices do not always result in more vessels being sold for recycling. Steel may support the bid, but the owner’s decision depends on the wider commercial position of the vessel. Freight earnings, employment prospects, drydock timing, delivery logistics, sanctions, seasonal conditions, and owner strategy can all influence whether a ship actually comes to market.

This episode is useful for shipowners, operators, brokers, cash buyers, recyclers, financiers, chartering teams, maritime lawyers, technical managers, ESG teams, and anyone following ship recycling markets, steel prices, demolition values, and vessel retirement decisions.

Key Topics Covered

• Why steel prices are central to ship recycling offers
• How recyclers assess re-rollable steel and plate values
• Why recycling bids reflect forward market risk
• The difference between quoted steel prices and executable market levels
• How downstream demand, liquidity, and payment cycles influence recycling prices
• The role of rebar, billet, construction demand, and mill activity
• Why inventories and import pressure can affect ship recycling values
• How currency movement and financing conditions shape vessel recycling offers
• Why strong steel prices do not always release more ships for recycling
• How freight markets, timing, and owner strategy affect demolition decisions

About the Series

Steel, Ships, and Recycling Values is a three-part GMS Podcasts series examining how steel markets influence ship recycling pricing and owner decision-making.

Episode 1 focuses on why steel prices drive ship recycling offers. Episode 2 will look at why recycling markets such as Bangladesh, Pakistan, India, and Turkey can price the same vessel differently. Episode 3 will examine why recycling offers can move quickly and what shipowners should watch before deciding whether to recycle now or wait.

As the world’s leading cash buyer of ships and offshore assets for recycling, GMS continues to provide market insight, commercial guidance, and responsible recycling solutions for shipowners across the global maritime industry.

For more ship recycling insights, market reports, and vessel recycling guidance,

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