Ship Recycling Markets in 2025: A Look at the Current Landscape

The year 2025 has kicked off with a sense of optimism in the ship recycling markets, as buyers across the Indian sub-continent show a willingness to make purchases, according to a report from cash buyer GMS.

Despite this initial positive outlook, there are still challenges ahead. Key economic factors impacting ship recycling locations are being influenced by geopolitical turmoil and China’s economic instability.

GMS reports that news of several large LDT wet units, some with questionable or sanctioned backgrounds, have been circulating recently. As a result, several Very Large Crude Carriers (VLCCs) have been sold to financially capable recyclers in India and Bangladesh over the past week.

In Bangladesh, progress has been made in upgrading facilities to comply with the Hong Kong Convention, which is set to come into force later this year. Four yards have already obtained their HKC approvals, with more expected to follow in the coming months.

Prices in the ship recycling market cooled off towards the end of 2024. There is hope that the market will become more bullish once President Trump, seen as pro-business, resumes office in January.

India recently announced tariffs to address the economic impact of cheap Chinese steel imports, which have undercut domestic inventories in Alang and Gadani. This has led to a drop in steel plate prices at these locations.

Despite economic challenges, Pakistan has re-entered the picture as end buyers are showing interest in available units, albeit at lower price levels compared to competitors.

Meanwhile, Turkey continues to face economic difficulties with no significant changes reported this week.

Looking ahead to 2025, there is an expectation of increased vessel supply. However, owners are holding onto their older vessels as they have been profitable in recent years, delaying their entry into the recycling market.

GMS demo rankings and pricing for the first week of 2025 are as follows: