The South Asian ship recycling market is currently navigating turbulent waters as steel plate prices remain unstable and uncertainty persists around U.S. tariffs on steel imports.
According to cash buyer GMS, recent weeks have seen an influx of large vessels sent for recycling, including LNG carriers and a VLOC, capturing attention even as global economic instability and erratic trade policies weigh heavily on price offers.
This combination of factors is driving down demand and creating a cautious outlook across key recycling hubs like India and Bangladesh.
Unstable Steel Prices and Tariffs Shake Market Confidence
The ship recycling industry in South Asia is facing rising uncertainty as steel plate prices remain volatile and U.S. steel import tariffs linger, according to cash buyer GMS. The influx of large vessels for recycling, including four LNGs and a VLOC, comes at a time when economic instability and inconsistent U.S. policies have already dampened market sentiment.
India and Bangladesh See Decline in Offers and Demand
India is likely to suffer the most, with Alang recyclers’ prices down ~5% in the past month. Steel plate prices continue to decline, pushing down recycling offers. Bangladesh mirrors this trend, as HKC yard upgrades take priority and the number of active, approved yards shrinks, leading to falling demand and dampened prices.
Monsoon Season and Labor Gaps Slow Operations
The monsoon season, marked by frequent rains, is traditionally slower for ship recycling. Operations are disrupted, and many workers return to their hometowns, further slowing supply to steel mills and weakening Q3 market momentum.
With reduced yard capacity, falling steel prices, and looming tariff impacts, Q3 2025 remains uncertain for the South Asian ship recycling sector.
Did you subscribe to our daily Newsletter?
It’s Free Click here to Subscribe!
Source: MARINE LINK
