GMS reports that ship recyclers faced another slow week as December opened, with the Baltic Exchange continuing its decline. The Dry Index fell nearly 3% as pressure increased across major freight segments. Capesize rates dropped 4.4%, Panamax declined 1.4%, and the smaller segments slipped by five basis points. Oil prices showed little change and closed near USD 59.70 per barrel, while inflation eased slightly in several key recycling destinations.
Currency Swings Add More Stress to the Market
As the week progressed, financial currencies created even more challenges. India and Bangladesh struggled with sharp fluctuations, making negotiations difficult. Meanwhile, Turkey continued to see persistent currency weakness, placing it among the most unstable of the major recycling locations.
Steel Prices Decline Across the Subcontinent
Local steel plate prices also moved lower. Rates fell by just under USD 5 per ton across all subcontinent markets. As a result, many yards paused negotiations and waited for conditions to stabilize. This hesitation further slowed activity at a time when recyclers were already dealing with a limited vessel supply.
Tonnage Shortage Reaches New Extremes
GMS noted a clear shortage of vessels for dismantling. The usually occasional large LDT LNG units, which had seen around 15 sales earlier in the year, were absent. Strong freight rates helped keep more ships trading and out of recycling pipelines. The week also saw almost no arrivals at subcontinent yards, a rare situation and an unusual milestone for the ship recycling market.
Looking Ahead to 2026
According to GMS, 2025 may still end as one of the stronger years of the past four. However, the outlook depends heavily on whether 2026 brings more tonnage and better market stability. Recyclers continue to hope for improved conditions as global shipping demand adjusts and more vessels approach the end of their lifespans.
Recycling Price Overview (Week 49, 2025)
| Rank | Location | Sentiment | Dry Bulk (USD/LDT) | Tankers (USD/LDT) | Containers (USD/LDT) |
|---|---|---|---|---|---|
| 1 | Bangladesh | Steady | 410 | 430 | 440 |
| 2 | Pakistan | Weak | 400 | 420 | 430 |
| 3 | India | Weak | 380 | 400 | 410 |
| 4 | Turkey | Steady | 270 | 280 | 290 |
These figures reflect the cautious mood across major recycling destinations, influenced by currency risks, weaker steel demand, and limited vessel demolition opportunities.
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Source: MarineLink
