Ship Recycling Market Likely to Remain Volatile in 2025

The recycling traffic in both India and Bangladesh continued to surprise and impress (especially in India), in week 2 of 2025, reports cash buyer GMS.

“The pre-existing state of global economies also continues to persist in the wake of the unfolding present as the U.S. Dollar continues to hammer recycling nation currencies marking noteworthy increases by the week,” says GMS.

The steel prices affecting the ship recycling markets, including domestic levels, saw a weakening this week, with China leading the way in declining / cheaper steel that remains globally available. “How far will India’s ongoing steel tariffs assist Alang’s ongoing performance, whilst Pakistani levels are just a hair away from an impending drop, remains to be seen.”

Meanwhile, the various ship recycling nations endured another week of mixed performances as there has already been a marked contrast in terms of actually workable candidates compared to a very muted 2024, which saw the lowest volumes of overall units sold for recycling in over a decade.

Several high profile and larger LDT vessels are being offered for sale this week, including LNG carriers and Panamax bulkers, after a year of smaller vessels being offered last year.

With the Hong Kong Convention coming into effect by the middle of this year, and yards yet to expeditiously gear up and align their operations with its requirements, it is likely that 2025 will be another hallmark year characterized by volatility, says GMS.

Prices are likely to be volatile this year, highlighted by the unfolding sanctions that would affect the supply of vessels, especially in the short-term.

GMS demo rankings / pricing for week 2 of 2025 are: