GMS Podcasts

Week 19 marks a major shift in the global ship recycling market as Brent crude falls sharply, diplomacy re-enters the Hormuz conversation, and freight markets move strongly in the opposite direction. Despite Brent correcting from USD 126.41 per barrel to near USD 100, the expected release of recycling tonnage has not materialized.

The Baltic Dry Index climbed to 2,991, up 12% from the previous week, with Capesize earnings surging and daily returns moving above USD 42,000. Strong freight earnings continue to encourage owners to keep older vessels trading rather than sending them for recycling, keeping supply tight across the Indian sub-continent.

Bangladesh remains the leading recycling destination, supported by firm demand, a stable Taka, sustained Letter of Credit flow, and competitive steel plate pricing. However, Chattogram continues to face the same core issue: buyers are ready, but vessels are not arriving.

India saw sharp currency volatility, with the Rupee touching a fresh low around 95.27 before recovering near 94.18 on diplomatic headlines. Alang remains the lowest-priced sub-continent destination, but its HKC-compliant yard base continues to support regulated tonnage demand.

Pakistan’s position has become more complicated. Gadani pricing remains firm, with steel plate levels around USD 679 per ton, but April inflation surged to 10.9%, prompting a 100-basis-point rate hike to 11.5%. Pakistan’s Gulf proximity premium still holds, but its earlier stability advantage has narrowed.

Turkey remains structurally uncompetitive for mainstream tonnage, with the Lira weakening to a fresh record low and April inflation rising to 32.37%. Aliaga continues to rely mainly on EU-regulated tonnage, where compliance can outweigh the price gap.

With only around 3 weeks left before the monsoon window closes, the central question is no longer whether demand exists. It does. The question is whether diplomacy can release vessel supply in time. For now, strong freight, unresolved Hormuz risks, inflation pressure, and limited candidate flow mean the backlog holds.

This episode covers ship recycling prices, vessel supply, freight markets, oil prices, currencies, inflation, HKC compliance, and the latest developments across Bangladesh, India, Pakistan, and Turkey.

• Brent crude falls from USD 126.41 to near USD 100

In this episode, Dr. Anand Hiremath, CEO of the Sustainable Ship and Offshore Recycling Program, speaks with Mr. Vidhyadhar Rane, General Secretary of the Alang Sosiya Ship Recycling & General Workers’ Association, about what the Hong Kong Convention means for workers in Alang.

The discussion looks at ship recycling from the worker’s perspective. Alang has been part of the global ship recycling industry for decades, and the sector has changed significantly through investment, training, infrastructure upgrades, compliance systems, and stronger safety practices.

With more than 110 HKC-compliant yards in Alang, the episode explains how the Hong Kong Convention has helped bring greater structure to worker safety, training, PPE use, emergency preparedness, hazardous material handling, and environmental controls.

The conversation also highlights that Alang’s progress did not begin only with HKC. Yard owners have invested heavily over the years in infrastructure, impermeable flooring, drainage systems, safety equipment, training areas, documentation, and emergency response systems.

A key focus of the episode is the role of workers themselves. Ship recycling is skilled work, and workers play an essential role in steel recovery, dismantling, recycling, and the wider circular economy. HKC has helped make worker training and safety more formal, more visible, and more consistent.

The episode also explores the importance of training in local languages for Alang’s migrant workforce. Since workers come from different Indian states and speak different languages, practical communication, demonstrations, pictures, and clear instructions are essential for real safety outcomes on the ground.

Looking ahead, the conversation emphasizes that HKC works best when yard owners invest, supervisors guide, unions engage, and workers actively participate in safe working practices.

This episode is useful for shipowners, recyclers, cash buyers, regulators, sustainability professionals, ESG teams, maritime lawyers, compliance officers, circular economy stakeholders, and anyone following responsible ship recycling in India.

Topics discussed in this episode

Week 18 marks a structural turning point in global ship recycling markets as the situation in the Strait of Hormuz shifts from disruption to sustained blockade. What was previously seen as a temporary constraint has now evolved into a large scale supply shock, with oil markets reacting sharply and reshaping the economics of vessel trading and recycling.

Brent crude surged to multi year highs, briefly reaching USD 126 per barrel before stabilizing above the USD 110 range. This sharp increase reflects a significant tightening in global energy supply, with Hormuz transit flows dropping to nearly four percent of normal levels. The scale of disruption is now being described as one of the largest in history, with no immediate resolution in sight.

Despite this volatility in energy markets, freight rates remain firm. The Baltic Dry Index continues to hold near recent highs, supported by strong Capesize and Supramax earnings. Elevated freight returns are reinforcing vessel trading economics, keeping older tonnage active in the market and delaying recycling decisions.

Currency movements across the sub continent reflect varying exposure to the energy shock. The Indian Rupee has weakened to record lows due to heavy reliance on Hormuz linked imports, while Pakistan’s Rupee has remained stable, providing a relative advantage. Bangladesh continues to operate within a stable range, and the Turkish Lira has shown modest recovery.

Bangladesh remains the leading destination with strong pricing, improved financing conditions, and a cleared Letter of Credit pipeline. However, the market continues to face a lack of available vessels. India maintains its structural advantage through a large base of compliant yards, though currency pressure and energy exposure continue to weigh on competitiveness. Pakistan is emerging as the strongest structural player this quarter, supported by stable currency, firm steel pricing, and proximity to Gulf trade routes. Turkey remains limited to niche activity due to its pricing gap with the sub continent.

No recycling transactions were reported this week, reinforcing the ongoing supply shortage. As the monsoon window narrows to approximately four weeks, the expected release of vessels is increasingly being deferred. The Q1 overhang is now transitioning into a confirmed Q2 backlog.

This episode provides a detailed analysis of ship recycling trends, recycling pricing, freight dynamics, and the broader geopolitical factors shaping supply across global markets.

Key Market Developments this Week

Links & Resources

In this episode of GMS Podcasts, Jamie Dalzell, Head of GMS Singapore, speaks with Nayeem Noor, VP of Business Development at GMS, about how the ongoing Iran war is influencing shipping and ship recycling markets.

With disruption around the Strait of Hormuz, the expectation across the industry was that recycling supply would increase. Historically, geopolitical shocks tend to push older or less efficient vessels toward demolition. That pattern is not playing out this time.

Instead, freight markets have remained firm. Routes have lengthened, risk premiums have increased, and older vessels continue to find employment. Even with higher operational and geopolitical risk, many ships are still commercially viable, which is delaying recycling decisions.

The discussion focuses on this shift in market behaviour. Rather than exiting the market, owners are continuing to trade as long as earnings justify it. As a result, recycling yards are not seeing the expected flow of tonnage.

The episode also looks at the current position across major recycling destinations. India offers compliance strength through Alang, Bangladesh has demand but remains short of supply, Pakistan has regional advantages but faces execution challenges, and Turkey continues to operate in a more limited, specialised segment.

A key takeaway is that supply has not disappeared. It has been deferred. The ships are still in the system, but they are not being released for recycling.

Looking ahead, the conversation considers what could change this dynamic. If freight softens or costs rise, recycling supply could return quickly. At the same time, damaged or disrupted vessels linked to the Iran conflict may eventually enter the recycling stream, bringing a different set of operational and compliance considerations.

This episode will be useful for shipowners, recyclers, cash buyers and industry participants following freight markets and the impact of the Iran war on global shipping.

Week 17 of 2026 marks a decisive shift in global ship recycling markets as geopolitical risk intensifies and supply constraints deepen.

In this episode, Grace and Ryan break down the latest developments shaping the industry, including the indefinite extension of the US-Iran ceasefire, renewed escalation in the Strait of Hormuz, and its direct impact on oil, freight, and recycling dynamics.

Brent crude has rebounded toward the mid-90 dollar range as geopolitical risk reasserts itself, reversing last week’s demand-driven softness. At the same time, freight markets continue to strengthen, with the Baltic Dry Index reaching multi-month highs and Capesize earnings climbing on sustained Brazil to China iron ore flows. Strong vessel earnings remain the key factor discouraging recycling activity.

Currency movements across the sub-continent are reinforcing existing pricing dynamics rather than driving change. The Indian Rupee has weakened, the Pakistani Rupee remains stable, Bangladesh holds within range, and the Turkish Lira has reached fresh lows. Despite these shifts, the core issue remains unchanged: a lack of available tonnage.

Bangladesh continues to lead the market with strong pricing, stable currency, and accelerated Letter of Credit approvals. However, with only five weeks remaining before the monsoon season, time pressure is intensifying. Compliance scrutiny remains elevated, with due diligence now embedded across transactions.

India retains its structural advantage with Hong Kong Convention compliant yards, but ongoing currency weakness and energy exposure linked to Hormuz disruptions continue to limit competitiveness. Pakistan is emerging as the strongest performer, with firm pricing, stable fundamentals, and a reinforced proximity advantage to Gulf tonnage. Turkey remains uncompetitive for mainstream recycling and is limited to EU regulated tonnage.

No major recycling transactions were reported this week, highlighting continued supply tightness across all destinations.

As the monsoon window narrows, the market narrative is shifting. The expected release of tonnage is no longer delayed but increasingly deferred, raising the likelihood of a growing backlog into Q2.

This episode provides a clear, data-driven view of ship recycling trends, scrap market pricing, freight dynamics, and global maritime risk factors shaping supply decisions.

In this episode of GMS Podcasts, Jamie Dalzell, Head of GMS’ Singapore office, speaks with Dr. Anand Hiremath, CEO of the Sustainable Ship and Offshore Recycling Program, about the European Commission’s revised draft guidance on the inclusion of third-country ship recycling facilities under the EU Ship Recycling Regulation (EU SRR).

Although presented as clarification, the revised draft is widely seen across the maritime industry as a more consequential development. The discussion explores how the proposed guidance may raise the practical threshold for non-EU recycling yards seeking inclusion on the EU List, particularly in areas such as infrastructure, environmental monitoring, downstream waste management, verification systems and inspection expectations.

The conversation also looks closely at the implications for Alang, where many yards have made substantial progress through investments in safety systems, environmental controls and compliance with the Hong Kong International Convention for the Safe and Environmentally Sound Recycling of Ships. Jamie and Anand examine whether the revised framework builds on that progress or risks creating a compliance threshold that is difficult to achieve in practice.

This episode covers the wider commercial and regulatory consequences for shipowners, recycling facilities and the global recycling market, including the risk that overly restrictive entry requirements may reduce participation rather than expand responsible oversight.

This is an important conversation for shipowners, cash buyers, recyclers, regulators, P&I stakeholders, compliance specialists and maritime professionals following the evolving regulatory landscape in ship recycling.

Subscribe to GMS Podcasts for expert discussion on ship recycling, maritime regulation, responsible recycling standards and market developments shaping the industry.

Week 16 of 2026 highlights a shift in momentum across global ship recycling markets, as geopolitical tensions remain unresolved and continue to shape market behavior.

In this episode, Grace and Ryan break down the latest developments across Bangladesh, India, Pakistan, and Turkey, with a focus on how macro factors are influencing recycling activity. The expected release of vessel supply has once again been delayed, even as oil prices soften.

The macro environment this week reflects elevated risk rather than stability. While Brent crude has eased to the mid-90 dollar range due to weaker demand expectations, the Strait of Hormuz remains constrained and geopolitical tensions persist. At the same time, freight markets have strengthened significantly, with the Baltic Dry Index reaching its highest levels since December. Strong vessel earnings continue to discourage owners from recycling older ships.

Currency markets remain relatively stable across the subcontinent, and steel prices are holding recent gains. However, these factors are not driving the market. The key constraint remains the lack of available tonnage.

Bangladesh continues to lead the market with strong pricing, stable currency, and improving Letter of Credit flows. However, the pre-monsoon window is narrowing rapidly, putting pressure on recyclers to secure vessels in the coming weeks.

India remains structurally strong with its HKC compliant infrastructure, but ongoing currency weakness and energy supply disruptions are limiting competitiveness. Pakistan is emerging as a strong and stable second option, supported by firm steel prices and a favorable position due to ongoing regional dynamics. Turkey remains uncompetitive for mainstream tonnage and continues to operate within its EU regulated niche.

No major recycling transactions were reported this week, reinforcing the ongoing supply shortage across all key destinations.

As Q2 progresses, the market is approaching a critical point. The key question remains whether vessel supply will return before the monsoon season or continue to be delayed by strong freight markets and geopolitical uncertainty.

Week 15 of 2026 marks a potential turning point for the global ship recycling markets, as the long-standing war-driven oil premium begins to ease for the first time in months.

In this episode, Grace and Ryan break down the latest developments across Bangladesh, India, Pakistan, and Turkey, highlighting how falling oil prices, firm freight markets, and stable currencies are shaping recycling sentiment.

The macro environment shifted this week as Brent crude dropped sharply from above USD 109 to near USD 101 per barrel following geopolitical developments involving Iran. However, despite this correction, the Baltic Dry Index climbed above 2,100, indicating that freight earnings remain strong and continue to delay recycling decisions.

Currency markets remained relatively stable, with the U.S. Dollar softening slightly, offering marginal support to sub-continent buyers, while the Indian Rupee weakened modestly after last week’s rebound.

Regionally, Bangladesh continues to lead the market, supported by a sharp increase in steel plate prices to BDT 71,000 and improving Letter of Credit approvals. India remains structurally strong with over 110 HKC-compliant yards but is still constrained by limited supply and ongoing energy challenges. Pakistan stands out for its stability, with firm steel prices and a steady currency supporting consistent bidding. Turkey, despite a slight currency recovery, remains uncompetitive for mainstream tonnage and focused on niche EU-regulated recycling.

A notable transaction this week included an LNG vessel reported at USD 513 per LDT, signaling that deals are still occurring, albeit selectively.

The key theme remains unchanged: recyclers are ready to buy, but vessel supply continues to lag. As oil prices soften and geopolitical uncertainty evolves, the market may be approaching an inflection point, but the timing of any meaningful supply release remains uncertain.

As Q2 progresses and the monsoon window narrows, the industry is watching closely: will lower oil prices trigger increased recycling activity, or will firm freight markets continue to delay the flow of tonnage?

Key Market Developments this week

Week 14 of 2026 sees the global ship recycling markets enter Q2 under continued pressure, with many of the same challenges from Q1 still firmly in place.

In this episode, Ingrid and Henning walk through the latest developments across Bangladesh, India, Pakistan, and Turkey, where recyclers remain active but are still facing a shortage of workable end-of-life vessel supply.

The broader macro environment continues to play a key role. Ongoing tensions in the Middle East are keeping oil prices elevated above USD 100 per barrel, supporting freight earnings and delaying demolition decisions. As a result, older vessels are staying in service longer, limiting the flow of tonnage into recycling yards.

Currency movements added another layer this week. The Indian Rupee rebounded following central bank intervention, offering some support to local buyers, while the Turkish Lira weakened further, keeping Turkey uncompetitive for mainstream tonnage. At the same time, mixed steel price trends across the sub-continent continue to make pricing decisions more difficult.

Regionally, Bangladesh remains the most active market, with steady post-Eid momentum, improving LC approvals, and firm pricing levels. India continues to benefit from strong HKC compliance infrastructure but remains constrained by limited supply and operational challenges. Pakistan shows improving stability, supported by firm steel prices and growing compliance capacity, while Turkey remains focused on niche EU-regulated recycling segments.

The key theme this week remains unchanged: recyclers are ready to buy, but vessels are not arriving in sufficient numbers.

As Q2 begins, the market continues to watch closely -  will supply improve ahead of the monsoon season, or will strong freight markets continue to delay recycling activity?

Key Market Developments This Week

Week 13 of 2026 sees global ship recycling markets reopen after the Eid holidays, but the expected rebound in activity has yet to arrive. Across Bangladesh, India, Pakistan, and Turkey, recyclers returned to the market facing the same central challenge: a shortage of workable end-of-life vessel supply.

The broader macro environment remains the main driver. Ongoing conflict in the Middle East is still supporting oil prices above USD 100 per barrel and keeping freight earnings elevated, which continues to delay demolition decisions as owners keep older vessels trading longer. Mixed U.S. Dollar performance and uneven steel plate movements across the subcontinent added further uncertainty to bidding levels this week.

In this episode, Grace and Ryan discuss how post-Eid sentiment has improved in parts of the market, especially in Bangladesh, where recyclers appear more active and more willing to chase fresh tonnage. However, financing bottlenecks, unresolved sanctions-related concerns, and still-flat steel fundamentals continue to limit momentum. India saw a firmer steel tone and remains the clear leader in Hong Kong Convention compliant recycling capacity, with more than 110 compliant yards in Alang. Pakistan continued to show improving engagement, supported by HKC-certified yards and geographic proximity to Gulf tonnage, while Turkey remained structurally disadvantaged on price despite retaining a specialist niche for EU-regulated vessels.

The key theme this week is straightforward: market appetite is returning faster than vessel supply. That imbalance is keeping transaction volumes low even as buyer sentiment improves.

As Q2 begins, the market focus shifts to one critical question: will a pre-monsoon wave of recycling candidates emerge, or will high freight returns continue to keep demolition tonnage out of reach?

Key Market Developments This Week