Ship Recycling: The Global Market Remains Weak and Sluggish: BEST OASIS
The global ship recycling market remains weak and sluggish, with low demand and limited transactions across key destinations. India continues to struggle as market activity slows, further impacted by uncertainty surrounding upcoming tariffs on steel, aluminium, and other metals, making buyers more cautious and hesitant to commit. Bangladesh sees minimal interest, with buyers negotiating at lower levels, while ongoing political uncertainty further dampens sentiment. Pakistan remains stagnant, with no meaningful transactions or signs of recovery, as industry players stay on the sidelines. Meanwhile, Türkiye continues to see steady but subdued demand, with no significant price movements or new developments. Overall, the market lacks momentum, with buyers hesitant and industry sentiment leaning towards caution. Unless a strong trigger in demand, economic improvement, or greater market confidence emerges, ship recyclers are likely to remain in a wait-and-watch mode, navigating through one of the slowest phases in recent times.
The U.S. plans to introduce reciprocal tariffs on countries it sees as having unfair trade practices. This means the U.S. will charge the same tariffs that other countries impose on American goods. Nations like Brazil, India, Japan, Canada, and the EU could be affected, with a focus on those with large trade deficits with the U.S., such as Mexico and China. While still in development, these tariffs could take effect as early as April 2, prompting many to negotiate and avoid penalties.
India
The market slows due to low demand and uncertainty over steel and aluminium tariffs.
The market remains slow, with very low demand for both scrap and vessels, resulting in limited transactions. The U.S. government has announced a 25% tariff on all steel and aluminium imports, set to take effect on March 12, 2025. This trade measure has created uncertainty among market players, leading to increased caution among buyers and investors. As a result, market activity has slowed, and overall sentiment remains subdued.
Despite not being introduced in the recent budget, speculation has resurfaced that India may impose a 15%-25% safeguard duty on Chinese steel imports to protect domestic producers from rising inflows. An investigation initiated in December remains ongoing, with a decision expected within six months. If implemented, the duty could stay in effect for up to two years.
Beaching Dates
14 February to 16 February
26 February to 05 March
13 March to 18 March
Bangladesh
The price for Recycling Ships in the Bangladesh Market remains soft with limited buying activity and no significant developments.
The sentiment continues to remain soft and inactive, with the local market similar to the previous week. Buyers are looking for inventory but only at lower levels, resulting in very few transactions.
A few breakers are exploring vessel options, particularly in non-green yards, but interest remains at lower levels, in line with local market sentiment.
Political uncertainty persists, as the election date is yet to be fixed. While there is discussion of holding elections by late 2025 or early 2026, this remains uncertain. The market remains at a standstill, and until a newly elected government is in place, no major market activity or any development is expected.
Beaching Dates
14 February to 17 February
28 February to 03 March
14 March to 17 March
Pakistan
Price for Recycling Ships in Pakistan The market remains stagnant with extended inactivity and no signs of change.
The market continues without any movement, with no changes. This prolonged stagnation has persisted for a significant period, with no signs of improvement or new developments. Industry sentiment remains cautious, and no immediate shifts are anticipated.
In external financial developments, Pakistan has requested China to reschedule 3.4 billion USD in debt for two years to address a foreign funding gap identified by the International Monetary Fund (IMF). This is the second such request in the past five months, reflecting ongoing financial pressures and the country’s struggle to meet external debt obligations.
Beaching Dates Throughout the month
Türkiye
Price for Recycling Ships in Türkiye The market remains stagnant and idle, with weak demand and limited activity.
The market remains the same as the previous week, with no notable changes in demand or pricing. Activity continues to be limited, and overall sentiment remains subdued.
In 2024, the ship recycling market saw a shift in regional trends. While India and Bangladesh experienced a decline in the number of decommissioned vessels, Türkiye saw a notable increase, solidifying its position in the industry. With these changes shaping the market, it remains to be seen how 2025 unfolds and whether these trends continue.
Beaching Dates Throughout the month
