India’s ship recycling industry is expected to grow to 3.8-4.2-million GT (gross tonnage) in 2025, as against an estimated 2.3-2.6-million GT in 2024, according to a report, reports Business Standard.
Global gross tonnage
According to CareEdge, India accounts for 33 per cent of the global gross tonnage dismantled in 2023, second only to Bangladesh, which handled 46 per cent.
The ship recycling industry in India is expected to grow at compound annual growth rate of around 10 per cent in CY26-CY28, she said, adding cooling-off of Baltic Dry Index, stabilisation of heavy melting scrap prices, and increase in obsolete ships in operations, suggest that more ships will enter the recycling market from CY25 onwards.
In terms of volume, in CY22 and CY23, India dismantled 2.26 and 2.47 million GT, respectively, CareEdge said.
Ship recycling
As newer, more efficient vessels are introduced, older ships become increasingly unviable for operation. This trend creates a rising need for ship recycling, as operators seek to retire aging vessels that are no longer economically feasible to maintain, the ratings agency stated.
According to the report, the Indian ship recycling sector activity faced a decline amid rise in heavy melting scrap prices in FY23 and FY24.
This recent stabilisation suggests that the market has adjusted to post-pandemic conditions, providing a more predictable cost structure for industries reliant on scrap metal, CareEdge stated.
In India, Alang in Gujarat is among the largest ship recycling facilities in the world with over 140 recycling yards.
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Source: Business Standard
