Marine link states that ship recycling sector has seen a severe drop in activity, with current market levels retreating by over USD 100/LDT since early 2024 highs, with most vessels now priced below USD 500/LDT. Cash buyer GMS reports that geopolitical instability and economic pressures have disrupted this market, leading to one of the slowest periods in the past decade.
Challenges Across Major Ship Recycling Nations
Bangladesh remains mostly inactive as infrastructure projects are paused under an interim government. While India has taken on substantial tonnage, Pakistan’s and Bangladesh’s recycling yards are seeing low demand. Additionally, cheaper Chinese steel has weakened steel plate prices in these regions, despite tariffs intended to curb this impact.
Economic Forecast and Future Outlook
The rising U.S. Dollar has further complicated matters, depreciating the currencies of key ship recycling nations and adding to local economic strain. As the fourth quarter continues, industry experts anticipate sustained challenges and potentially a turbulent economic outlook that could affect the global ship recycling industry through 2024 and into 2025.
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Source: MARINE LINK
