24 Aug 2026
The global ship recycling market entered Week 34 of 2026 with stronger pricing, renewed vessel movement across South Asian recycling destinations and heightened geopolitical uncertainty ahead of further sanctions measures against Iran.
Sanctions remained a central concern for international shipping markets, with the United States preparing a broader package of economic measures targeting Iran, including banks, businesses, shipping registries, cash transfers and smuggling networks. Commercial traffic continued through the Strait of Hormuz, but shipping registries, sanctions exposure and compliance remained increasingly important considerations for vessels operating in or connected with the region.
Oil markets strengthened for a second consecutive week. Brent crude reached approximately USD 93.93 per barrel, while WTI moved to around USD 87.10, with additional supply concerns arising from Ukrainian strikes on Russian refineries and ports.
Dry bulk freight markets were comparatively stable after several weeks of sharp reversals. The Baltic Dry Index eased from 2,844 to approximately 2,791, while the Capesize Index moved lower to around 4,429. Panamax levels also softened, although the Supramax Index strengthened to approximately 1,637, its highest level since late July.
For ship recycling, the most significant development was a sharp increase in sub-continent recycling indications. Pakistan moved to the top of the GMS market rankings, with Gadani indications reaching approximately USD 515-520 per LDT for dry bulk vessels, USD 535-540 per LDT for tankers and USD 545-550 per LDT for containers.
Pakistan's Gadani ship recycling market strengthened significantly during the week as limited vessel supply combined with strong recycler appetite and a shortage of imported Iranian billets. Local steel plate firmed to approximately PKR 203,000 per ton, equivalent to around USD 730 per ton. The Pakistani Rupee also strengthened to approximately 277.66 against the U.S. Dollar, while suitable recycling candidates remained limited and previously secured vessels continued moving toward the market.
Bangladesh remained close behind Pakistan, with Chattogram recycling indications increasing to approximately USD 495-500 per LDT for dry bulk vessels, USD 515-520 per LDT for tankers and USD 525-530 per LDT for containers. Demand for small and mid-sized tankers remained particularly strong, while local steel plate held near BDT 64,000 per ton throughout the week.
Vessel activity at Chattogram also increased. The LPG tanker Su Shun was recorded as delivered, while the 6,357 LDT Than, 9,520 LDT Param and 1,589 LDT Wantong 498 arrived ahead of the next August 28-31 delivery tide window. Bangladesh's foreign exchange reserves also climbed above USD 37.1 billion, while USD/BDT remained near 123.50.
India's Alang ship recycling market remained less competitive on standard tonnage despite a recovery in domestic steel prices. Local steel plate increased from approximately INR 39,500 to INR 40,500 per ton by Friday, with the U.S. Dollar equivalent rising to approximately USD 423 per ton. However, Pakistan and Bangladesh continued to maintain substantial recycling-price premiums over Alang.
Alang nevertheless remained active in specialist and compliance-sensitive tonnage. The 5,685 LDT reefer Frio Naruto was recorded as delivered during the week, while the 11,552 LDT Cutta tanker and the 43,402 LDT FT Island were also listed among recent Alang deliveries. India continues to maintain significant recycling capacity and a deep pool of valid Statements of Compliance, while discussions surrounding potential European Union Ship Recycling List inclusion remain closely monitored.
Turkey's Aliaga ship recycling market remained comparatively stable, with vessel indications holding between approximately USD 262 and USD 284 per LDT depending on vessel type. The Turkish Lira crossed 48 against the U.S. Dollar for the first time, while inflation and monetary policy remained key domestic considerations. Turkey continues to compete primarily through regulatory alignment, Basel Convention compliance and specialist recycling capability rather than direct pricing competition with South Asian destinations.
Week 34 port activity showed a noticeable increase in vessel movement. Alang recorded Frio Naruto, Cutta and FT Island as delivered, while Chattogram reported three fresh arrivals and the delivery of Su Shun. Gadani reported no new vessel arrivals despite maintaining the strongest recycling indications in the sub-continent.
The Week 34 global ship recycling market therefore closed with Pakistan leading on price, Bangladesh maintaining strong tanker demand, India benefiting from rebounding domestic steel prices and renewed vessel deliveries, and Turkey remaining stable. For shipowners, cash buyers and ship recyclers, vessel type, compliance profile, local steel conditions, currency movements and destination-specific demand continue to play an important role in determining achievable recycling values.
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