28 Sep 2026
The global ship recycling market entered Week 39 of 2026 with the shortage of available recycling candidates becoming even more pronounced. Exceptionally strong tanker earnings, healthy dry freight markets and continued geopolitical disruption are giving owners compelling reasons to keep ageing vessels trading rather than send them for recycling.
Tanker availability has tightened significantly as Gulf flows, security concerns and disrupted alternatives compete for available tonnage. Some VLCC employment has reportedly exceeded USD 1 million per day. A tanker was also struck in the Strait of Hormuz during the week, while reports of a possible phased U.S.-Iran arrangement to reopen the Strait offered some diplomatic progress without yet restoring normal trading conditions.
Crude markets remained volatile. Brent fell below USD 100 per barrel following reports of possible progress around Hormuz and renewed Saudi export options before recovering toward USD 106 on Friday. WTI traded around USD 94. Oil prices have therefore eased from recent panic levels, but expensive crude, complicated routing and tanker scarcity continue to support freight markets.
Dry freight strengthened again. The Baltic Dry Index reached 3,473 on Thursday, with Capesizes at 5,939, Panamaxes at 2,382 and Supramaxes at 1,782. Strong vessel earnings continue to discourage owners from considering recycling, further restricting the supply of candidates available to ship recyclers.
That dynamic produced the clearest ship recycling signal of Week 39: no fresh market sales were reported.
The waterfront, however, remains active. Previously secured vessels continue to arrive and deliver across Chattogram, Alang and Gadani. Physical recycling activity is therefore continuing, but the pipeline of fresh candidates is failing to replenish as owners find more attractive employment in the trading and second-hand markets.
Pakistan retains the leading position in the conventional South Asian ship recycling market. Gadani remains the strongest market for standard dry bulk, tanker and container tonnage, although the aggressive buying levels seen in August have cooled. Local steel has stabilised at PKR 195,000 per ton, approximately USD 696 per ton. Demand remains, but the principal constraint is the availability of suitable vessels.
Bangladesh continues to rebuild recycling demand. Chattogram has seen increased physical activity, with several previously secured vessels arriving or delivering during the week. Local steel remained stable at BDT 64,000 per ton, approximately USD 522 per ton. Yard capacity and buyer appetite are increasingly available, but fresh recycling candidates remain scarce.
India continues to operate as a two-tier market. Alang remains behind Pakistan and Bangladesh for conventional bulkers and tankers, while specialist, green, non-ferrous-rich and compliance-sensitive vessels continue to attract stronger interest. India's compliance position also remains supported by industry backing for the proposed addition of two Indian ship recycling facilities to the European List, although final approval remains pending.
The more significant challenge for India this week came from steel. Alang plate declined from INR 42,200 per ton at the beginning of the period to INR 40,000 per ton by September 25. In Dollar terms, this represents a decline from approximately USD 440 to USD 417 per ton, adding further pressure to India's conventional recycling position.
Turkey remains steady following its recent post-summer improvement. Indicative Aliaga levels remain around USD 300/LDT for dry bulk vessels, USD 310-315/LDT for tankers and USD 325-330/LDT for containers. However, the Turkish Lira has weakened toward 49 to the U.S. Dollar, restricting Dollar-denominated purchasing power. Turkey therefore continues to rely on geography, specialist tonnage, European regulatory access and Basel-compliant trades rather than competing directly with South Asian recycling markets.
For Week 39, GMS market indications place Pakistan first, followed by Bangladesh, India and Turkey. Pakistan is indicated at approximately USD 510/LDT for dry bulk vessels, USD 530/LDT for tankers and USD 540/LDT for containers. Bangladesh follows at USD 500, USD 520 and USD 530/LDT respectively, while India is indicated at USD 465, USD 485 and USD 495/LDT.
The bigger story remains vessel supply.
Ship recyclers have appetite. Yards have capacity. Previously purchased ships are reaching the waterfront. But extraordinary tanker earnings, healthy dry freight markets and second-hand alternatives continue to encourage owners to trade rather than recycle.
The breakers have the appetite. The trading market has the ships.
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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