GMS Leadership

Global ship recycling markets enter Week 25 with the war chapter finally closing, but the recycling market still waiting for the weather to cooperate.

The United States and Iran have signed an interim peace agreement, reopening the Strait of Hormuz after more than 100 days of closure.

Brent crude has collapsed toward USD 78 per barrel, effectively erasing the entire war premium that pushed prices above USD 126 in late April.

Freight has also continued to cool. The Baltic Dry Index eased to around 2,653, while daily Capesize earnings declined to approximately USD 35,162 from the late-May high near USD 49,511.

For ship recycling, this is a major turning point.

Lower bunker costs and softer freight earnings may finally begin pushing older tonnage closer to recycling. The two forces that kept ageing vessels trading through the war are now weakening together.

But timing remains difficult.

The Indian subcontinent is now deep in the monsoon season, limiting beaching activity across Bangladesh, India, and Pakistan even as macro conditions improve.

Bangladesh remains steady, with a stable Taka, cleared LC pipeline, and strong demand in Chattogram.

India’s Rupee rallied to a five-week high near 94.60, supported by lower oil prices and improving external-account expectations.

Pakistan’s Rupee held near its strongest level of 2026, while Gadani continues to show the firmest absolute pricing in the basin.

Turkey remains structurally separate, with the Lira breaking 46 per US Dollar and Aliaga continuing as an EU-regulated recycling niche.

The key message this week:

Peace is signed.
The premium is gone.
The ships are moving.
But the rains reign.

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