03 Jul 2026
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 Episode 3 of the series Steel, Ships, and Recycling Values.
Following Episode 1’s discussion on why steel prices sit at the centre of ship recycling offers, and Episode 2’s review of why Bangladesh, Pakistan, India, and Turkey price vessels differently, Episode 3 focuses on timing: why recycling offers can change within days and what shipowners should watch before deciding whether to recycle now or wait.
The conversation explains why a vessel can attract a different recycling offer even when the vessel, LDT, and destination remain the same. Steel prices, local currency movement, buyer sentiment, financing availability, freight earnings, yard appetite, and practical delivery windows can all shift quickly and influence the recycler’s ability to bid.
A key point in the episode is that recyclers buy vessels before they sell the recovered steel. This creates exposure to forward risk. Between purchase, delivery, beaching, cutting, and resale, steel prices may fall, local currencies may weaken, demand may slow, financing costs may rise, or delivery conditions may change. As a result, recyclers price not only today’s market, but also the risk of where the market may be when the recovered steel is eventually sold.
The episode also explains why headline steel prices alone do not tell the full story. A rising steel market may support stronger offers, but yards still need to see real buyer activity, mill demand, trader liquidity, bank support, and confidence that prices can hold. Similarly, a stable local steel price may not prevent offers from falling if the local currency weakens against the U.S. dollar.
Freight markets are another important factor. When freight earnings are strong, older vessels may continue trading instead of being sold for recycling. This means recycling markets can have demand, finance, and price support, but still see limited vessel supply if owners believe continued trading offers better value.
The discussion also highlights the cost of waiting. Owners may hold out for a slightly higher recycling price, but they remain exposed to steel risk, currency risk, financing risk, freight changes, regulatory requirements, drydock timing, class renewals, ballast water issues, seasonal constraints, and delivery windows. In ship recycling, a firm and executable offer at a strong level may sometimes be more valuable than a theoretical higher number that never performs.
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, vessel retirement decisions, and demolition values.
Why ship recycling offers can change within days
How steel price direction affects recycling bids
Why currency movement can quickly change dollar-based offers
How buyer sentiment influences yard appetite
Why financing, LC availability, and bank support matter
How freight earnings affect an owner’s recycling decision
Why recyclers price forward risk before the steel is sold
How monsoon, holidays, tides, delivery windows, and regulatory timing affect execution
Why waiting for a higher price carries commercial risk
Why execution certainty is part of the real recycling price
What shipowners should watch before deciding whether to recycle now or wait
About the Series
Steel, Ships, and Recycling Values is a three-part GMS Podcasts series examining how steel markets influence ship recycling prices and owner decision-making.
Episode 1 focused on why steel prices drive ship recycling offers. Episode 2 explained why Bangladesh, Pakistan, India, and Turkey can price the same vessel differently. Episode 3 examines why recycling offers can move quickly and what shipowners should watch before deciding whether to recycle now or wait.
As the world’s largest 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.
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