Ship Recycling Market Update Week 29 2026 | Hormuz Blockade, Oil Near $85, Bangladesh Flooding

In this Week 29, 2026 episode of the GMS Weekly Podcast, Grace and Ryan examine the renewed geopolitical, freight, currency and operational pressures shaping the global ship recycling market.

The United States has reinstated its naval blockade of Iranian ports following several days of strikes around Bandar Abbas, Qeshm Island and Sirik. A tanker reportedly heading toward Kharg Island was disabled after ignoring warnings, while two additional vessels were redirected. The renewed escalation has pushed Brent crude close to USD 85 per barrel and increased uncertainty around Gulf vessel movements, war-risk premiums and recycling decisions.

Dry bulk freight remains firm. The Baltic Dry Index reached 2,944, its highest level since early June, while stronger Capesize earnings continue to give owners of ageing vessels an incentive to remain in service rather than commit tonnage for recycling.

Across the major ship recycling destinations, severe flooding and landslides in Bangladesh have caused significant loss of life, displaced more than one million people and brought beaching and local steel trading in Chattogram close to a standstill. Bangladesh remains the highest-ranked recycling destination, but sentiment and price indications have softened.

India continues to offer the deepest recycling capacity and strongest compliance infrastructure, although the Rupee weakened toward 96.40 and Alang remains the lowest-priced sub-continent market. Pakistan’s currency and steel prices remained exceptionally stable despite renewed Gulf tensions, while Turkey continues to operate as a regulation-driven niche market.

Key topics include: Strait of Hormuz blockade, Iranian port restrictions, Brent crude prices, Baltic Dry Index, Capesize freight, ageing vessel supply, ship recycling demand, Chattogram flooding, Alang recycling capacity, Gadani war-risk premiums, Aliaga recycling, currencies, steel prices and market rankings.

For detailed vessel indications, market rankings, port positions and recycling-market analysis, access GMS Weekly through the GMS website or mobile app.