GMS Leadership

Imagine avoiding the extraction of more than 100 million tons of raw iron ore.

That is the estimated resource impact associated with approximately 69.16 million tons of recycled steel recovered from ships at Alang.

By returning existing steel to productive use, ship recycling can reduce demand for virgin raw materials and the environmental disruption associated with additional mining.

It is a clear example of the circular economy in practice: recover more, extract less and extend the life of valuable resources.

GMS welcomes today’s joint statement from BIMCO, European Shipowners | ECSA, the International Chamber of Shipping (ICS), INTERCARGO, INTERTANKO and the World Shipping Council supporting the proposed inclusion of two Indian ship recycling facilities on the European List.

The statement sends an important signal that ship recycling facilities should be assessed objectively against safety and environmental requirements, based on their compliance and performance.

We welcome the industry’s recognition of the progress made by responsible ship recycling facilities in India and the continued movement towards safe, environmentally sound, and globally consistent ship recycling.

Global ship recycling markets closed Week 35 with plenty of buyer appetite, but not enough fresh tonnage to satisfy it.

That remains the central story across the sub-continent.

Freight strengthened sharply during the week, with the Baltic Dry Index moving back above 3,100 and Capesize markets leading the advance. For owners of ageing vessels, that keeps the trading option attractive. For recyclers, it means fewer candidates coming to market.

At the same time, the latest U.S. sanctions against Iran have added another layer to an already complicated transactional environment. Ownership structures, registries, trading histories, banking exposure and sanctions compliance are becoming increasingly important when assessing where a vessel can actually be delivered.

Pakistan remains at the top of the market.

Gadani indications are around USD 520/LDT for dry bulk, USD 540/LDT for tankers and USD 550/LDT for containers. The aggressive buying seen earlier in August has cooled slightly, but appetite is still there. Visakha and Lyra have now arrived, giving the market some of the physical tonnage it had been waiting for.

Bangladesh remains close behind.

Chattogram is around USD 500/LDT for dry bulk and USD 520/LDT for tankers. Than, Param, Bursa and Wantong 498 moved through the latest tide, while the 27,824 LDT FPSO Glow arrived. The beach is active, but much of that activity is coming from previously secured tonnage. Fresh sales remain thin.

India continues to improve in a different part of the market.

The 18,848 LDT LPG carrier Ble In arrived at Alang, while local steel strengthened to around INR 41,000 per ton. India is still behind Pakistan and Bangladesh on conventional pricing, but Alang continues to attract specialist, green and compliance-sensitive units where ex*****on capability matters as much as headline price.

Turkey remains broadly unchanged, with Aliaga continuing to compete through regulation, compliance and specialist recycling rather than conventional South Asian pricing.

Sanctions land.
Oil retreats.
Freight rallies.
Supply thins.

The market has buyers. It has yard capacity. It has competitive pricing.

What it does not have is enough owners ready to sell.

And with strong freight earnings keeping older vessels employed, while compliance requirements narrow the pool of executable candidates, competition for the right ship is likely to remain firm.

Listen to the latest GMS Weekly Podcast for our concise take on the developments shaping the global ship recycling market: https://www.gmsinc.net/podcasts/detail/global-ship-recycling-market-insights-week-35-2026-sanctions-land-freight-rallies-supply-thins

Ship Recycling Market Insights Week 35 2026 | GMS Leadership Week 35 ship recycling insights: Pakistan leads pricing, freight rallies above 3,100, sanctions tighten compliance and fresh vessel supply remains limited.

Imagine having enough electricity to power every household in the Netherlands for more than a year.

That is approximately the scale of the 44.4 billion kWh of energy saved through ship recycling at Alang.

By recovering and recycling steel from end-of-life ships, valuable material can return to productive use while reducing the energy requirements associated with primary steel production.

It is a striking example of how responsible ship recycling contributes to energy efficiency, resource conservation and the circular economy.

How significant can the environmental impact of ship recycling be?

At Alang, ship recycling carried out to date has helped avoid approximately 72.55 million MT of CO₂ emissions.

To put that number into perspective, it is roughly equivalent to the entire annual CO₂ emissions of a country like Sri Lanka.

Recovering steel from end-of-life ships reduces the need for primary raw-material production and helps conserve resources while supporting a more circular economy.

A large number and an even larger reminder of the value that responsible material recovery can create.

What happens to a ship when it reaches the end of its operating life?

Much more can be recovered than just scrap steel.

Responsible ship recycling can give a second life to structural metals, engines, generators, pumps, valves, navigation equipment, electrical systems, furniture, lighting and other onboard equipment.

Each recovered, reused or refurbished item represents a resource that can remain productive instead of being discarded.

One ship. Thousands of recoverable resources.

That is the circular economy in action.

Ship recycling creates environmental value far beyond material recovery.

At Alang, recycling end-of-life ships instead of producing the equivalent steel through iron ore-based routes has helped avoid approximately 72.55 million MT of CO₂ emissions.

To put that impact into perspective, this is comparable to the amount of carbon absorbed by approximately 27.9 million acres of forest in one year.

Responsible ship recycling supports lower emissions, resource efficiency, and a more circular approach to steel production.

The European Commission has proposed the inclusion of three ship recycling facilities at Alang in the draft 16th update to the European List of Ship Recycling Facilities.

The proposal represents an important recognition of the substantial progress made by Indian recyclers in worker safety, environmental protection, infrastructure and regulatory compliance. If formally adopted, these facilities would become the first South Asian ship recycling facilities included on the European List.

“GMS has consistently maintained that responsible ship recycling should be assessed on verified standards and actual performance, rather than geography. We look forward to the proposal receiving final approval and to the development of a clear, transparent pathway for other qualified Indian facilities to be evaluated on their individual merits,” said Nayeem Noor, our Vice President, Business Development.

“This initiative can strengthen cooperation between India and the European Union, expand responsible recycling capacity and support continuous improvement across the global ship recycling industry.”

The proposal remains subject to consultation, consideration by EU Member States and formal adoption.

Read the complete ET Infra article by P MANOJ here: more: https://infra.economictimes.indiatimes.com/news/ports-shipping/indias-alang-ship-recycling-yards-poised-for-eu-approval/132651103

Three Alang yards on the verge of breaking into EU list of ship recycling facilities Three Indian ship recycling facilities in Alang are set to be included in the EU's official list, marking a significant milestone in environmental compliance and ship recycling standards. This approval opens new opportunities for the Indian ship recycling industry and strengthens EU-India cooperatio...