Ship Recycling Market Update Week 21 2026 | Hormuz Passage Opens, Monsoon Window Closes

Week 21 marks a major turning point in the global ship recycling market as the strongest reopening signal yet emerges from the Strait of Hormuz. Three supertankers transited the Strait for the first time since March, while President Trump said the United States is in the “final stages” of talks with Iran. Brent crude eased more than 5% to around USD 105 per barrel, and WTI moved below USD 100. However, for ship recycling, the timing remains critical. With only around one week left before the practical monsoon slowdown across the sub-continent, the improved passage signal may have arrived too late to release meaningful recycling tonnage into the market. Freight markets remain supportive for owners to keep older vessels trading. The Baltic Dry Index closed around 3,005 after peaking above 3,092, while Capesize earnings remained above USD 40,000 per day. Panamax earnings strengthened further, keeping the trading premium intact for older dry bulk vessels. Bangladesh continues to show strong operational stability, with the Taka holding around 122.87 against the U.S. Dollar and the Letter of Credit pipeline functioning for a sixth consecutive week. Bangladesh’s April CPI rose to 9.04%, showing that inflationary pressure has reached Chattogram, but the impact remains contained compared with Pakistan and Turkey. India faces renewed currency pressure as the Rupee decisively broke above 96, touching a fresh all-time low near 96.97 against the U.S. Dollar. Despite this, India’s April CPI remained calm at 3.48%, comfortably within the RBI’s tolerance band. Alang remains the lowest-priced sub-continent destination, while retaining its strong HKC compliance advantage. Pakistan continues to consolidate its position, with the Pakistani Rupee holding firm around 278.63 against the U.S. Dollar. Local steel prices remain strong, keeping Gadani in one of the firmest pricing positions globally, supported by currency stability and the State Bank’s earlier rate hike. Turkey remains structurally uncompetitive for mainstream tonnage despite another record low in the Turkish Lira. Aliaga continues to focus mainly on EU-regulated recycling candidates, where compliance requirements outweigh price differentials. This week’s central market message is clear: Hormuz passage may be opening, Brent has eased, and diplomacy has reaccelerate, but the recycling window is closing. With freight earnings still elevated and monsoon approaching, recycling supply remains limited across all major destinations. This episode covers: Global ship recycling market trends Strait of Hormuz reopening signals Brent crude and WTI price movements Baltic Dry Index and dry bulk freight strength Capesize, Panamax, Supramax and Handysize earnings Bangladesh, India, Pakistan and Turkey recycling markets Bangladesh inflation and Taka stability India Rupee record low and CPI performance Pakistan Rupee stability and Gadani pricing strength Turkey Lira weakness and Aliaga’s EU-focused role Hong Kong Convention-compliant recycling yards Monsoon impact on ship recycling activity Cash buyer sentiment and recycling pricing outlook Vessel supply, backlog and owner decision-making Key Market Developments This Week Three supertankers crossed the Strait of Hormuz for the first time since March President Trump said U.S.–Iran talks are in the “final stages” Brent crude eased more than 5% to around USD 105 per barrel WTI moved below USD 100 per barrel Baltic Dry Index closed around 3,005 after peaking above 3,092 Capesize earnings remained above USD 40,000 per day Panamax earnings strengthened to more than USD 22,000 per day Bangladesh Taka remained stable around 122.87 against the U.S. Dollar Bangladesh April CPI rose to 9.04% Bangladesh LC pipeline remained operational for a sixth consecutive week Indian Rupee touched a fresh all-time low around 96.97 against the U.S. Dollar India April CPI remained controlled at 3.48% Pakistan Rupee held firm around 278.63 against the U.S. Dollar Gadani pricing remained among the strongest globally Turkish Lira weakened to a fresh record low around 45.58 against the U.S. Dollar Aliaga remained focused on EU-regulated tonnage Monsoon window narrowed to approximately one week Recycling tonnage supply remained limited despite stronger reopening signals For full details, vessel rankings, and port positions, download the GMS Weekly on our website or mobile app. Follow GMS on LinkedIn, Facebook, Instagram, and X for daily updates.