Global ship recycling markets faced another difficult week as 2025 moved toward its close, according to the Week 47 edition of the GMS Weekly Podcast, Forums and Frictions.
Oil futures fell to about USD 57.7 per barrel, freight stayed active but remained well below year-earlier levels, and steel plate prices weakened further in Bangladesh and Pakistan.
Volatile exchange rates in India and Bangladesh cut purchasing power for recyclers, while newly imposed US and EU sanctions on Russia and Iran increased scrutiny on dark fleet activity and added long-term recycling risk.
Key global indicators continued to shift against recyclers in late November. Oil prices are down more than 6 percent on the month and roughly 16 percent year on year.
The Baltic Dry Index shows week-on-week strength in several sectors but sits about 9 percent below its level thirty days earlier and nearly 50 percent lower than in November 2024.
Regulatory pressure intensified as the European Union prepared a twentieth sanctions package that may allow member state navies to board suspected shadow-fleet vessels and encourage flag deregistration, while additional US sanctions placed about 170 Iran-linked ships under restrictions.
These developments are tightening trading options for older units and are expected to influence recycling flows over the coming years.
Bangladesh remained the highest-priced market, with indicative levels near USD 410 per LDT for dry bulk, USD 430 for tankers and USD 440 for container ships.
Actual volumes stayed limited, and 2025 was described as “anorexic” in activity. Inflation fluctuated between 8 and 9 percent and the Taka weakened to around BDT 122.5 per USD. Local steel plate prices slipped by another USD 1 to about USD 525.9 per ton as stockpiled recycled steel continued to weigh on yards, and cheaper imported scrap attracted mills.
Political tensions ahead of the February 2026 elections contributed to operational risk. One more facility received Hong Kong Convention certification, raising the total to 20 approved yards, while the GMS Sustainable Ship and Offshore Recycling Program delivered extensive worker training.
India’s Alang market moved into what the report described as “losing big ly” territory, with recyclers stepping back from firm bids. The Rupee weakened by more than 1 percent in a week to roughly Rs 89.6 per USD, approaching a level that undermines confidence in forward pricing.
Steel plate prices gained around USD 5 to about USD 398 per ton but still fell short of USD 400. Smaller and lower-quality units remained priced below USD 400 per LDT despite nominal indications of USD 380 for bulkers, USD 400 for tankers and USD 410 for container ships.
Inflation eased to about 0.25 percent in October, well under the 2 to 2.5 percent target.
Two-tiered prices driven by discounted dark-fleet tonnage and cheaper imported steel added pressure.
With just one vessel in port and no new fixtures, India risks losing its long-held HKC advantage as Bangladesh and Pakistan progress with approvals.
Pakistan saw the week’s most significant structural development as the country’s first HKC-compliant yard prepared for formal approval following audit sign-offs. Several more yards are expected to follow within three to six months, with further upgrades planned by mid-2026.
Short-term fundamentals remained difficult: local steel plate prices fell by USD 11 to around USD 586 per ton, still the highest in the region but challenged by cheaper Iranian imports. The Rupee strengthened slightly to roughly PKR 282.6 per USD. For the third straight week, Gadani recorded no major new arrivals aside from a small vessel idling for more than a month. Indicative prices stood near USD 400 per LDT for bulkers, USD 420 for tankers and USD 430 for containers.
Turkey’s market stayed quiet, with Aliaga levels unchanged at about USD 260 per LDT for dry bulk, USD 270 for tankers and USD 280 for container vessels. The Lira weakened past TRY 42.4 per USD, and steel plate prices and demand remained stagnant. Low vessel supply continued to limit yard utilisation.
Overall sentiment across South Asia and Turkey reflected a mix of weaker currencies, soft or stagnant steel prices and restricted demolition supply, while regulatory scrutiny increased around the dark fleet and non-compliant trading activity. Continued HKC progress in Bangladesh and the anticipated first approvals in Pakistan were highlighted as important long-term developments.
Looking ahead to 2026, the report noted key uncertainties around how quickly older mainstream and shadow-fleet vessels will transition to compliant yards and whether clearer freight and regulatory conditions will support a more sustained recycling cycle.
GMS (Global Marketing Systems) is a privately held ship-recycling brokerage and advisory company incorporated in the United States. It acts as an intermediary between shipowners and recycling yards, operating across major demolition markets and publishing regular market analyses, including podcasts and reports for industry participants.
