According to the latest report by the world’s largest cash buyer GMS, the scrapping markets in South Asia have started 2026 with considerable turbulence.
Volatile prices, fluctuating steel prices and changing exchange rates are currently making pricing much more difficult. It is becoming increasingly difficult to determine which price can be achieved for which type of ship per LDT – and which buyer in which market is prepared to bid at all.
The uncertainties also reflect the latest international developments. While the Baltic Dry Index (BDI) recently rose slightly, the Capesize and Panamax indices fell slightly. Meanwhile, the price of crude oil exceeded the $60/barrel mark for the first time in a long time, closing at $60.92, but is still well below the previous year’s level. At the same time, both the dollar and local steel prices were in the spotlight: currency devaluations continued in India and Turkey, while steel prices recently moved largely sideways.
There has been a noticeable shift in the ranking of the scrapping markets. According to GMS, Bangladesh has slipped to the bottom of the regional price tables, with no signs of a pre-election-related recovery so far. Pakistan, on the other hand, is currently benefiting from improved demand and comparatively more stable prices. According to reports, shipbreaking yards in Gadani have recently even been able to attract units from the Far East. One reason for this is the reduced availability of cheap Iranian steel products on the local market.
At the same time, the supply of ships to be recycled remains tight, meaning that numerous shipbreaking yards in Gadani have free capacity, provisional DASR certificates and available letters of credit. India continues to position itself between the markets and is showing interest in specialized tonnage, such as LNG tankers with a high non-ferrous metal content, stainless steel tankers or reefer vessels. However, bids remain under pressure due to the devaluation of the rupee and persistently fluctuating steel prices.
On the western edge of the market, Turkey remains comparatively well utilized, partly due to an increased number of RoRo scrappings. However, the report goes on to say that it remains to be seen how sustainable this development is in view of further lira devaluations.
| Rank | location | Sentiment | Dry Bulk ($/LDT) | Tankers ($/LDT) | Containers ($/LDT) |
|---|
| 1 | Pakistan | Improving | 420 | 440 | 450 |
| 2 | India | Steady | 410 | 430 | 440 |
| 3 | Bangladesh | Declining | 400 | 420 | 430 |
| 4 | Turkey | Steady | 270 | 280 | 290 |
(Source: GMS)
