According to cash buyer GMS, the ship recycling industry is witnessing a downward trend in vessel prices, driven by ongoing tariff conflicts and a surge in aged vessel arrivals.
Key Market Trends
Tariff Impact – Trade restrictions and counter-tariffs continue to suppress ship scrap values.
Surge in Aged Vessels – Older vessels, which saw prolonged service due to high charter rates in 2023-24, are now flooding the recycling market in early 2025.
Steel Price Decline – Flatlining steel prices and weaker currencies in shipbreaking nations (India, Bangladesh, Pakistan) are lowering vessel offers.
Baltic Dry Index Stability – Dry bulk shipping rates are stabilizing, but recycling inflows remain high despite falling prices.
Currency & Regional Impact
India Hit Hardest – A strong U.S. Dollar is affecting shipbreaking currency values, particularly in India, where vessel offers are cooling.
With Q1 and possibly Q2 of 2025 seeing further price declines, shipowners may need to adjust expectations as market conditions evolve.
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Source: MARINE LINK
