15 Sep 2026
The global ship recycling market entered Week 37 of 2026 with tighter Middle East shipping routes, oil above USD 100 per barrel, firm freight earnings and renewed competition for limited recycling candidates.
Geopolitical risk expanded beyond the Strait of Hormuz as developments around Bab al-Mandab, Mocha and Mayun / Perim Island added fresh pressure on Red Sea routing. Brent moved above USD 107 per barrel, while WTI exceeded USD 103, increasing voyage costs but also supporting employment opportunities for ageing vessels. Strong freight and second-hand values continue to give shipowners alternatives to recycling.
Bangladesh strengthened noticeably, with Chattogram recyclers returning to the market as scarcity increased competition. The approximately 7,078 LDT bulker Uniorder was reportedly sold at around USD 450/LDT net, “as is” Belawan. Local steel remained stable at BDT 64,000 per ton, confirming that stronger bids are being driven mainly by requirement and limited vessel supply.
Pakistan remains the highest-priced South Asian destination, although August’s extreme urgency has eased. The 7,381 LDT bulker Portland II was reportedly committed at USD 521/LDT, while additional arrivals at Gadani have allowed recyclers to become more selective. Steel and currency remain broadly stable, so the change is one of reduced urgency rather than weaker fundamentals.
India remains third on conventional pricing but continues to outperform in specialist tonnage. The approximately 14,800 LDT Mandarin Arrow was reportedly sold at around USD 510/LDT for selected Hong Kong Convention-compliant yards. However, a weaker Rupee reduced Alang’s Dollar purchasing power during the week.
Turkey also moved higher, with Aliaga indications rising to around USD 290/LDT for dry bulk, USD 310/LDT for tankers and USD 320/LDT for containers, although the market remains structurally separate from South Asian conventional pricing.
For Week 37, Pakistan remains first, Bangladesh is improving, India continues to strengthen selectively and Turkey’s board has moved higher.
The key market issue remains supply. Fresh sales have returned, but not at a level sufficient to ease candidate scarcity. With freight still firm, second-hand values supportive and routing risks elevated, owners continue to hold leverage.
The ships can trade, so the beaches must pay.
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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