27 Jul 2026
The global ship recycling market entered Week 29 under renewed geopolitical pressure, firm dry bulk freight and severe operational disruption in Bangladesh.
The United States reinstated its blockade of Iranian ports following further strikes around Bandar Abbas, Qeshm Island and Sirik. The renewed tensions increased uncertainty around Gulf vessel movements, war-risk insurance and recycling deliveries through the Strait of Hormuz.
Brent crude climbed to approximately $84.77 per barrel, while WTI approached $79.56. Although the market reaction was smaller than earlier in the year, higher oil prices and security concerns continue to influence ship recycling decisions across South Asia.
The Baltic Dry Index reached 2,944, its highest level since early June, supported by stronger Capesize earnings and healthy iron ore and coal demand.
Higher freight earnings continue to encourage owners of ageing vessels to remain in service instead of sending ships for recycling. At the same time, rising bunker costs and war-risk premiums have increased the cost and complexity of delivering vessels to recycling yards.
The expected supply of recycling candidates has therefore been postponed rather than cancelled.
Flooding and landslides across Chattogram, Cox's Bazar and surrounding districts caused significant humanitarian disruption and affected more than one million people.
Commercially, ship recycling activity slowed sharply. Beaching operations nearly stopped, local steel trading was suspended and cash buyer enquiries remained limited.
Bangladesh continued to offer the highest recycling prices in South Asia, although market sentiment softened.
Week 29 Bangladesh Price Indications
The next delivery tide is scheduled between July 29 and August 1, with activity depending on weather conditions, yard access and infrastructure recovery.
The Indian Rupee weakened to approximately 96.40 against the U.S. Dollar before recovering slightly.
Local steel plate prices at Alang strengthened, while India maintained its position as the region's leading compliant recycling destination with more than 110 Statements of Compliance.
Despite its strong infrastructure and recycling capacity, India remained the lowest-priced major recycling market in South Asia.
Week 29 India Price Indications
Pakistan's currency and steel markets remained comparatively stable despite renewed geopolitical tensions.
The Pakistani Rupee traded near 278.15 per U.S. Dollar, while steel plate prices held around PKR 195,000 per ton.
Gadani continues to benefit from stable domestic conditions, although higher war-risk premiums could influence vessel movements through the Gulf.
Week 29 Pakistan Price Indications
Turkey maintained its policy interest rate at 37%, while the Turkish Lira weakened to another record low.
Aliaga remains a specialist recycling destination focused on European regulations and Basel Convention compliance rather than competing directly with South Asian pricing.
Week 29 Turkey Price Indications
The global ship recycling market remains influenced by three key factors: geopolitical tensions in the Gulf, firm freight earnings and seasonal disruption in Bangladesh.
Higher freight rates continue to delay vessel recycling, while increased oil prices and war-risk costs are making deliveries more expensive. Bangladesh still offers the strongest pricing, but flood-related disruption has reduced operational activity.
As conditions improve, market participants will closely monitor developments around the Strait of Hormuz, freight markets and Bangladesh's recovery to determine when the next wave of recycling candidates reaches South Asian yards.
The key drivers were the renewed U.S. blockade of Iranian ports, Brent crude approaching $85 per barrel, strong dry bulk freight and severe flooding in Bangladesh.
Bangladesh remained the highest-priced recycling destination despite flood-related disruption and softer market sentiment.
Strong freight earnings continue to make older vessels commercially attractive. Higher fuel costs, war-risk premiums and uncertain Gulf routing have also delayed recycling decisions.
India continues to lead South Asia with the region's largest compliant recycling capacity and more than 110 valid Statements of Compliance.
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