Ship Recycling Market Update Week 14 2026 | Q2 Opens Under Pressure

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

• Q2 opens with continued pressure from oil, freight, and geopolitical factors
• Elevated freight earnings continue to delay recycling decisions
• Ongoing shortage of end-of-life vessel supply across all major markets
• Bangladesh remains the most competitive and active destination
• Indian Rupee rebound offers support, but operational challenges persist
• Pakistan strengthens position with stable steel prices and improving sentiment
• Turkey remains uncompetitive for mainstream tonnage due to currency weakness
• Compliance and due diligence remain key following unresolved sanctioned vessels
• Overall market activity remains subdued despite improving buyer appetite