The global ship recycling market saw a slowdown in sale and purchase activity this week as the Chinese New Year holidays impacted operations, according to cash buyer GMS.
Key Trends and Challenges
- Increased Recycling Activity in Early 2025: A surge in recycling tonnage at the start of the year created optimism, but momentum has since slowed.
- India & Bangladesh Leading the Market: Since October 2024, Indian and Bangladeshi yards have absorbed most of the supply, while Pakistan’s recyclers were sidelined due to a financial crisis. However, Gadani recyclers are looking to return to the market.
- Container Ships Expected to Enter Recycling Market: The easing of Red Sea shipping lane congestion may lead to more container vessels being recycled.
- Steel Tariff Wars Impacting Prices:
- U.S.-China Tariff War (2025) is affecting currency fluctuations and steel plate prices in ship recycling nations.
- India is the only major ship recycling market where steel prices declined, while other markets saw stability.
- Concerns about China offloading surplus steel post-tariff may impact demand and vessel pricing.
Looking Ahead
- Market Pressures on Ship Owners: If vessel supply for recycling remains low, ship owners may face falling prices and difficult sale conditions.
- Week 6 Could Be a Pivotal Point: The effects of tariff wars on ship recycling demand, steel prices, and the U.S. dollar will likely shape the market for the rest of 2025.
GMS Demo Rankings / Pricing (Week 5, 2025)
- Trimble 1/2025
- Mlink 300X100
The ship recycling market remains highly volatile, with geopolitical factors, economic conditions, and steel pricing trends playing a crucial role in shaping its trajectory.
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Source: MARINE LINK
