GMS: Ship recycling markets shows noteworthy surges

According to GMS’ latest report, global ship recycling markets showed notable activity this week, with significant shifts in key indicators highlighting both opportunities and challenges. 

January 2026 has been a challenging period for the global ship recycling sector. Despite occasional waves of tonnage that have created mixed signals in the market over the past five years, notable changes emerged this week. Developments in global markets, influenced by recent U.S. policy actions, may create further uncertainties for February 2026 if current trends continue.

To start, we have noteworthy surges to report this week. Across the board, for most of the major fundamentals, except sub-continent steel plate prices that have become the perennial party poopers of the recycling world of late, the momentum was definitely beyond noticeable.

The Baltic Exchange Dry Index, oil futures, and the U.S. Dollar collectively soared this week, creating ripples that would certainly be felt within the next 4 weeks.

While the dry index soared 7.3% on the back of Capes polevaulting 12%, Panamaxes tripping up 1.6% in comparison, and Supras having a comparatively minor hiccup gain of 0.5%, oil futures impressively slid past USD 65/barrel and close the week out at USD 65.10 – a near 1% jump from last week.

The U.S. Dollar showed significant volatility across the ship recycling markets this week, reflecting broader global financial market fluctuations following tariff announcements affecting Canada, several European countries including France and Denmark, and impacting the ship recycling sector, with Pakistan experiencing notable effects.

Speaking of the ship recycling markets, they certainly seem to be having a global “up” moment, with India, Pakistan, Bangladesh and Turkey all reportedly picking up some long overdue tonnage, although only India, Bangladesh and Turkish anchorages are delivering the receipts to confirm these fixtures.

India managed to even secure an LNG for strictly HKC recycling only and Turkey with its bevy of roros and “buffet-full bellies” confirming that all of the major ship recycling destinations collectively secured their share of available market vessels since the start of January 2026 (and in a long time).

Yet, the performances of the various dry indices stand to support the general expectation that supply will more than likely slow further down as we head into the traditionally quieter Chinese New Year period / warmer months, and as a variety of geopolitical and financial shocks are expected to arrive in February, including the critical elections in Bangladesh, an INR that’s consistently breaking its own depreciation records (now firmly in the 90s against the U.S. Dollar), and an urgent need to speed up HKC transitions across the Gadani shoreline in order to be ready when tonnage actually starts flowing in, Q1 2026 certainly stands critical.

Notwithstanding, there was still some good news which came through this week as another yard in Gadani reportedly received the country’s first NK HKC approval after significant hard work, investment and the requisite infrastructure upgrades.

For Week 5 of 2026, GMS Market Rankings / vessel indications are as below: