Ship Recycling Market Update Week 13 2026 | Post-Eid Reopening Brings Bullish Bangladesh Mood but Supply Shortage Continues

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

• Post-Eid reopening failed to deliver a meaningful pickup in ship recycling volumes
• Middle East conflict continues to support high oil prices and firm freight earnings
• Elevated freight returns are still delaying vessel scrapping decisions
• Bangladesh emerged from Eid with stronger buying appetite and improving sentiment
• Two OFAC-sanctioned VLCCs remain unresolved off Chattogram, reinforcing due diligence concerns
• Bangladesh recycling indications held at about USD 450 / 470 / 480 per LDT for dry bulk, tankers, and containers
• India remained at USD 425 / 445 / 455 per LDT and continues to lead on HKC compliance with 110+ compliant yards
• Pakistan held at USD 440 / 460 / 470 per LDT and showed continued engagement despite steel pressure
• Turkey stayed at USD 270 / 280 / 290 per LDT and remains uncompetitive for mainstream commercial tonnage
• Port activity remained thin, with no new vessels reported at Chattogram or Gadani this week