Ship Recycling Prices Rise as Vessel Supply Dries Up: Global Market Update, September 2026
🔔 Subscribe to ShipUniverse Weekly →
Global ship recycling entered September with an unusual imbalance: yards want ships, but owners are still reluctant to sell them. Pakistan currently leads the standardized cash-buyer market at about $520/LDT for dry tonnage, $540/LDT for tankers and $550/LDT for containerships, followed by Bangladesh. India has become the market to watch this morning. On September 4, Wirana Shipping reported that Indian recycling offers have jumped by as much as $30/LDT in just three weeks, with some high-standard yards bidding at levels that may no longer be supported by current steel economics. Yet physical supply remains thin. Only four demolition sales were recorded by VesselsValue between August 27 and September 2. At the same time, Pakistan has started a Rs12 billion modernization of Gadani, Bangladesh wants more than 100 green-certified recycling yards, and India's push for access to EU-flagged ships has reached a potentially historic regulatory stage.
The Current Cash-Buyer Price Board
Latest standardized GMS indications entering September. Actual offers vary materially by vessel type, location, condition, compliance status, bunkers and non-ferrous content.
The Recycling Market Is Being Rebuilt While Volumes Stay Low
South Asia still dominates vessel recycling, but investment, certification and regulatory access are changing the competitive map.
Shree Ram Vessel Scrap / Shree Ram Shipping and YSI Recyclers have been proposed for the 16th European List. If finalized, EU-flagged ships would gain an Indian recycling option for the first time.
Construction is underway on roads, waste-treatment systems, fire and rescue stations, water treatment, a 30-bed hospital, worker housing and solar infrastructure designed around Hong Kong Convention compliance.
Bangladesh says roughly 31 yards are currently green-certified and wants that number to exceed 100. A centralized treatment, storage and disposal facility is also under feasibility work.
The February European List contained 30 facilities in Europe, 10 in Türkiye and one in the United States. EU-listed status remains a major differentiator for vessels subject to European recycling rules.
| Destination | Q1 2026 | Q2 2026 | H1 2026 | H1 Share |
|---|---|---|---|---|
| Bangladesh | 22 | 35 | 57 | 35.8% |
| India | 31 | 19 | 50 | 31.4% |
| Pakistan | 7 | 3 | 10 | 6.3% |
| Other Countries | 28 | 14 | 42 | 26.4% |
| Worldwide | 88 | 71 | 159 | 100% |
Ship Scrap Value & Recycle-Now Calculator
Compare current recycling values across the major markets, then test whether another period of trading could outweigh the risk of a future scrap-price decline.
Calculating...
Gross price spread before positioning, compliance, brokerage, bunkers, taxes and delivery costs.