Hopes Fade for Bright Start of 2026 for Ship Recyclers

January 20 ------ The Baltic Exchange Dry Index halted a nine-session slide to mark a 2.3% U-turn, climbing to 1,567 points, reports cash buyer GMS. This was driven by gains across segments: Capes (up 2.3%), Panamax (up 4.3%), and the smaller segments adding four points by week’s end.

“Notably, the overall benchmark index still finished the week down 7.2%. Oil too continued to trip on itself and stayed below the coveted USD 60/barrel mark despite a 0.4% increase, closing the week out at USD 59.44/barrel. “The U.S. Dollar meanwhile dominated all ship recycling currencies this week, while local steel plate prices across destinations dissolved into a mixed bag of opposing moves — both competitively and historically (i.e., versus last week).

“As such, ship recycling markets may continue to be deprived of tonnage as hopes for a brighter start to 2026 — indicated by the tapering indices back in November – December 2025 — begin to fade once again.”

Prices across the Indian sub-continent have continued on a downward path over the last month, with dry bulk indications at the bidding tables regularly below USD 400/LDT and several sales reportedly even being concluded in the USD 370s–USD 380s/LDT range.

Across destinations, India briefly surged by about USD 30/LDT before losing the full move the very next week as fundamentals softened. Pakistan’s demand has begun to show, with end buyers now increasingly hungry to fill plots as empty anchorages become more of the norm than the exception. “Bangladeshi recyclers have largely been on the lookout for particular units based on their recent appetites as local offerings have helped them bounce back to the top of the market rankings again. And Turkey? A bevy of European RoRos finally arrived Aliaga this week, delivering much-needed sustenance to an ailing local industry.”

Overall, the near-future still looks quiet, says GMS.

Source: marinelink.com