GMS Week 45 – Bids Hold Fast Against the Tide
Last week’s improving recycling sentiment has encountered a changing international backdrop. Crude oil has retreated sharply, domestic steel prices have weakened across several destinations, and freight continues to fluctuate. Yet recycling indications remain unchanged across all four markets. Buying appetite remains healthy, particularly in Bangladesh, although the persistent shortage of…
Week 45 of GMS Market Rankings saw recycling indications remain unchanged across four markets, despite various international factors affecting the industry. Crude oil prices fell, while domestic steel prices weakened in several destinations, and freight fluctuated. However, recycling sentiment remained steady. The market witnessed a significant oil price decline, with Brent dropping towards $99 per barrel and WTI around $91.
This correction was fueled by the hope of easing tensions in the Middle East, though ongoing security incidents in the region kept shipping risks unresolved. Lower crude prices could reduce operating expenses, but uncertainty about tanker employment and owners' recycling decisions persisted. Dry freight showed mixed signals, with the Baltic Dry Index recovering to 2,740 from 2,712 a week earlier, while capesizes and Panamax improved, but Supramaxes declined.
Steel markets moved against recyclers, with Indian plate dropping significantly, Pakistan experiencing a further correction, and China continuing to soften. Bangladesh remained steady, but a stronger dollar added pressure on the Taka due to high energy import costs. India also faced a regulatory hurdle when the European Parliament's ENVI Committee rejected the inclusion of Indian ship recycling yards on the approved list, citing environmental concerns.
This development introduced uncertainty into Alang's compliance plans. Bangladesh showed the strongest conventional buying appetite, supported by seasonal demand expectations, while Pakistan remained static, and India pursued opportunities in specialized vessels. Turkey maintained a selective approach but continued with significant activity.
The market remained stable despite softer steel and changing energy conditions. Buyers held onto their positions, but earnings from freight and second-hand alternatives discouraged owners from scrapping aging ships. Overall, the bids were holding strong, with a steady supply of willing sellers remaining a crucial element. For Week 45 of 2026, GMS Market Rankings and vessel indications can be found on the GMS website.
Written by urgent.news from Hellenic Shipping News's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
