09 Nov 2026
The global ship recycling market entered November with buying indications unchanged across Bangladesh, Pakistan, India and Turkey, despite a sharp retreat in crude oil and softer domestic steel prices in several destinations. The stronger buying sentiment established in Week 44 has largely held, but there has been no corresponding increase in newly reported recycling sales. Freight earnings, vessel employment opportunities and second-hand alternatives continue to restrict the number of suitable candidates reaching buyers.
The central commercial issue is therefore not simply how much recycling buyers are prepared to offer. It is whether buyers can secure vessels at workable margins while owners continue to see value in keeping ships in service.
Chattogram retains first place in the conventional recycling market and the strongest underlying buying appetite. End buyers remain interested in appropriate bulkers, tankers and container vessels, supported by future yard requirements and expectations for the approaching dry season. Its buying indications were unchanged from the preceding week, while local plate remained at BDT 66,000 per ton.
However, domestic finished-steel demand has not yet demonstrated a sustained improvement. Currency has become an additional concern: the Dollar reference rate approached BDT 124.62 on November 5, compared with approximately BDT 124.22 a week earlier. Demand for foreign currency associated with energy imports adds to the cost pressures faced by recyclers purchasing ships in Dollars.
More favourable seasonal operating conditions may eventually help construction activity, steel consumption and yard throughput. For now, that remains a prospective benefit rather than evidence of a completed recovery. Bangladesh's leading position is supported by confident buyers, but the supply of available ships is still insufficient.
Gadani remains second in the conventional rankings, but its sentiment classification returned to steady after improving in Week 44. This does not signal the disappearance of underlying demand. Rather, previously secured ships have met some immediate requirements, and buyers have become more selective about fresh commitments.
Domestic plate declined from PKR 188,000 per ton at the previous close to PKR 183,000 by November 6. Weaker recoverable steel values reduce purchasing flexibility, particularly when imported scrap competes as a feedstock for local steelmakers. Annual inflation eased to 9.6% in October from about 10.3% in September, providing some macroeconomic relief without reversing the pressure on recycling margins.
Gadani can still compete for commercially suitable candidates. The more immediate constraint is the combination of scarce new supply and the need to protect returns on recovered materials.
Alang remains third for conventional vessels, with local plate declining from INR 43,300 to INR 40,700 per ton during the reporting week. The reduction limits recyclers' purchasing flexibility, even as India's market sentiment remains classified as improving. Its relative strength continues to lie in specialised and higher-value vessels, including units with significant non-ferrous content or specific technical handling requirements.
A separate development has added regulatory uncertainty. On November 4, the European Parliament's Environment, Public Health and Food Safety Committee voted to object to the proposed inclusion of Indian ship recycling yards on the European approved list, citing environmental concerns associated with beaching methods. The objection is not a final rejection. A parliamentary vote is expected later in November, while a binding decision remains subject to EU Member State approval.
For owners, compliance-sensitive recycling decisions therefore require attention to the evolving regulatory position. For Alang, established technical capabilities remain an advantage, but the final outcome of the European process has not yet been determined.
Aliaga maintained a steady, selective market. Domestic finished-steel consumption remains subdued, although mills reportedly purchased imported scrap cargoes for December shipment. Those transactions reflect replacement buying rather than a demonstrated recovery in steel demand.
Turkey's annual inflation moved slightly higher to 29.77% in October, while the central bank's policy rate stood at 36% following its October reduction. Financing costs and Lira weakness continue to influence the economics of Dollar-denominated vessel purchases. Nevertheless, Aliaga retains a distinct role for European and Mediterranean tonnage where proximity, repositioning expenses, technical handling and environmental considerations influence the recycling decision.
Dry bulk freight remained uneven. The Baltic Dry Index recovered to 2,740 on November 5, from 2,712 a week earlier, after touching 2,590 during intervening sessions. Capesize strength contrasted with a softer Supramax segment, demonstrating why individual vessel employment prospects matter more than a single headline index.
Energy markets changed more sharply. Brent retreated from above USD 117 per barrel in the preceding report to around USD 99, while West Texas Intermediate traded around USD 91. Expectations of easing Middle Eastern tensions contributed to the decline, although renewed incidents in the Gulf and Strait of Hormuz indicated that passage risks were still unresolved.
Lower crude may ease some industrial and operating expenses, but it does not necessarily translate into additional tanker recycling candidates. Owners still evaluate trading earnings, insurance exposure, vessel condition, second-hand values and recycling alternatives together. A short-lived market correction rarely provides a sufficient reason on its own to end a vessel's trading life.
The Week 45 port reports recorded continuing physical activity. The 44,411 LDT tanker ERA arrived at Chattogram on November 4. At Alang, the chemical tanker STOLT CONFIDENCE arrived on November 6, while OIVO was delivered on November 6 and D/V SENCER 1 was delivered on November 3. Gadani recorded delivery of the 5,700 LDT bulker SPARROW on November 5, following its earlier October arrival.
These movements support current yard operations and demonstrate the progression of vessels already in the pipeline. They should not be interpreted as newly concluded purchases. No new market sales were reported in Bangladesh, Pakistan, India or Turkey during the week.
The near-term market will be shaped by whether domestic steel values stabilise, whether Bangladesh's seasonal expectations translate into actual consumption, and whether freight earnings begin to alter owners' recycling decisions. The European approval process affecting Indian yards and ongoing Gulf shipping security risks also warrant close attention.
For cash buyers and yards, unchanged indications signal a willingness to remain competitive, not proof of expanding margins. For shipowners, the availability of trading and second-hand alternatives continues to affect the timing of a recycling decision. A sustained increase in activity requires both suitable vessels and commercially workable transactions.
Did ship recycling buying indications increase in Week 45 of 2026?
No. The indications reported for Bangladesh, Pakistan, India and Turkey were unchanged from Week 44, after the preceding week's improvement across the three sub-continent destinations.
Were any new ship recycling sales reported?
No new market sales were reported across the four main destinations. Several vessels arrived or were delivered, but those movements relate to ships already in the pipeline.
Has the European Union rejected Indian ship recycling yards?
Not finally. The European Parliament's ENVI Committee objected to the proposed inclusion on November 4. Further parliamentary consideration and the relevant EU decision process were still pending as described in GMS Weekly dated November 6.
Week 45 confirms that recycling buyers are holding their positions despite weaker steel and sharply lower oil prices. The market's main limitation remains the scarcity of suitable vessels offered for sale, not an absence of interest from yards. Listen to the GMS Weekly Podcast with Henning and Ingrid and consult GMS Weekly for continuing ship recycling market intelligence.
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