GMS Predicts Difficult 2025 for Ship Recyclers

As global ship recycling markets head into the final month of the year on a comparatively firmer footing and a 2024 full of minimal sales and activity wraps up, cash buyer GMS says that noteworthy declines in prices have seen nearly USD 150/LDT wiped from sub-continent ship recycling levels.

“Q1 2025 doesn’t seem as though it is ready to greet the ship recycling industry with its customary January / Q1 vigor,” says GMS. “In fact, if things continue the way they are with the Nuclear Clock ticking ever closer to midnight, 2025 may be another difficult year for the shipping and ship recycling markets overall, despite a recent uptick in the inflow of overaged units previously purchased by Chinese ship owners across recent quarters, seeming to suggest otherwise.

“We have certainly seen healthy deliveries of Far Eastern Rusty Rhonda’s into the recycling markets of late, highlighting healthy port positions at both India and Bangladesh this week.”

Pakistan and India continue struggling with cheaper Chinese steel competing with recycled steel from their respective recycling yards, and Bangladesh continues to suffer through its political and increasing instability since former PM Sheikh Hasina fled the country.

Pakistan continues negotiations on its embattled IMF funding on the back of alleged misappropriation of funds, and Gadani buyers remain quiet, unlikely to engage in any serious business in the face of a stronger India, reports GMS. As such, it has been and likely will remain an uncertain and volatile end to 2024 global sub-continent recycling markets.

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