10 Aug 2026
The global ship recycling market entered Week 32 of 2026 with stronger buying appetite across South Asia, but rising freight earnings are creating fresh competition for available recycling tonnage. Bangladesh retained the strongest pricing and buyer confidence, Pakistan secured several recent candidates, and Indian recyclers returned more actively to the market after losing vessels to regional competitors.
The Strait of Hormuz remained central to global shipping markets as Iran and Oman agreed to a temporary shipping corridor. The arrangement does not represent a full reopening, and uncertainty remains over proposed transit conditions, restrictions and penalties. Security risks also persisted, with further incidents reported around the Strait during the week.
Oil markets initially responded positively to diplomatic developments before geopolitical concerns returned. Brent crude closed near USD 82.84 per barrel and WTI near USD 77.67, leaving Brent approximately 5% lower for the week and around 15% below its July peak.
For ship recycling, one of the most important developments was the sharp strengthening of the dry bulk freight market. The Baltic Dry Index climbed to 3,063, crossing 3,000 for the first time since early June, while Capesize earnings increased by more than 20% during the week. Panamax markets also strengthened. Higher freight earnings can delay recycling decisions by allowing ageing vessels to remain commercially attractive for continued trading.
Bangladesh continued to lead the major ship recycling destinations, maintaining the strongest vessel indications and firm buyer confidence. Chattogram's July 29 to August 1 delivery window cleared the backlog created during the severe flooding, while anchorage began rebuilding ahead of the August 12 to 15 tide window. Local steel plate eased to around BDT 64,000 per ton, but vessel indications remained steady and enquiry for mid-sized tonnage stayed healthy.
India's Alang ship recycling market showed a clear improvement in buying appetite. After several recent recycling candidates were secured by Chattogram and Gadani, Indian buyers returned more actively to the market. Local steel plate strengthened from INR 38,300 to INR 39,200 per ton during the week, while the stronger Indian Rupee lifted the U.S. Dollar equivalent to approximately USD 411.50 per ton.
India's broader regulatory position also remains in focus. The proposal to add two Alang recycling facilities to the European Union Ship Recycling List remains pending, while more than 115 valid Statements of Compliance continue to provide India with significant compliant recycling capacity.
Pakistan's Gadani market converted firm pricing into new business, securing several recent recycling candidates, with deliveries expected over the coming weeks. The continued absence of imported Iranian steel is supporting demand for recycled steel from local mills. Domestic plate remained around PKR 200,000 per ton, while Pakistan's July inflation eased from 11.1% to 9.2% and the State Bank of Pakistan maintained its policy rate at 11.5%.
Turkey's Aliaga recycling market remained stable but substantially below South Asian pricing. Official Turkish inflation eased to 31.75% in July, although the independent estimate remained significantly higher at 50.49%. The Turkish Lira reached fresh lows near 47.71 against the U.S. Dollar, while vessel recycling indications remained around USD 262 to USD 284 per LDT. Turkey continues to compete primarily through EU regulation, Basel Convention compliance and specialist tonnage rather than price.
GMS Market Rankings for Week 32 of 2026 place Bangladesh first, followed by Pakistan, India and Turkey. Indicative tanker recycling prices stood at USD 465-470/LDT in Bangladesh, USD 463-468/LDT in Pakistan, USD 442-447/LDT in India and USD 272-274/LDT in Turkey.
The Week 32 market therefore presents an increasingly competitive picture. Recycling buyers across Bangladesh, Pakistan and India are showing appetite for available vessels, but the sharp improvement in freight markets is strengthening the economic case for owners to keep older tonnage trading. Meanwhile, the temporary Hormuz corridor has improved physical passage without removing the geopolitical and operational risks surrounding one of the world's most important shipping routes.
For detailed vessel indications, market rankings, steel prices, port positions and ship recycling analysis, access GMS Weekly through the GMS website or mobile app.
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