Ship Recycling Market Update Week 37 2026 | Routes Tighten, Oil Tops $100 & Bangladesh Bids Rise

In this Week 37, 2026 episode of the GMS Weekly Podcast, Ingrid and Henning discuss the latest developments shaping the global ship recycling market, as tightening Middle East shipping routes, oil above USD 100 per barrel, strong freight earnings and limited vessel supply continue to influence recycling decisions. Geopolitical risk has expanded beyond the Strait of Hormuz, with developments around Bab al-Mandab, Mocha and Mayun / Perim Island adding fresh pressure on Red Sea shipping routes. Brent crude moved above USD 107 per barrel, while WTI exceeded USD 103, increasing bunker and voyage costs while disrupted routing continues to support employment opportunities for ageing vessels. The Baltic Dry Index remained around 3,521, keeping older bulkers trading and reducing the incentive for owners to sell for recycling. Bangladesh is strengthening, with Chattogram recyclers returning to the market as candidate scarcity increases competition. The approximately 7,078 LDT Handymax bulker Uniorder was reportedly sold at around USD 450/LDT net on an “as is” Belawan basis, while fresh arrivals are beginning to feed the waterfront. Local steel remains stable, suggesting that stronger vessel bids are being driven primarily by yard requirement and limited supply. Pakistan remains the highest-priced South Asian recycling destination, although the exceptional buying urgency seen in August has eased as more tonnage reaches Gadani. The 7,381 LDT bulker Portland II was committed at USD 521/LDT, showing that attractive smaller dry units can still secure competitive bids. India continues to outperform in specialist tonnage. The approximately 14,824 LDT general cargo vessel Mandarin Arrow was reportedly sold at around USD 510/LDT for selected Hong Kong Convention-compliant recycling yards. However, a weaker Indian Rupee reduced some of the purchasing-power support Alang enjoyed the previous week. Market indications place Pakistan first, followed by Bangladesh and India, while Turkey’s recycling price board also moved higher. Fresh recycling sales are returning, but strong freight markets, second-hand vessel values and geopolitical disruption continue to restrict the overall supply of recycling candidates. For detailed vessel price indications, market rankings, steel prices, port positions and global ship recycling market analysis, access GMS Weekly through the GMS website or mobile app.