Ship Recycling Market: Positive Outlook Ahead

The ship recycling market is showing positive signs as we head into the end of the year. Despite President Trump’s recent announcement of tariffs on China, Mexico, and Canada, the U.S. economy remains strong. U.S. inflation is at fantastic levels globally, and the U.S. Dollar is strengthening against most ship recycling nation currencies.

The recent ceasefire between Israel and Hezbollah has eased tensions around trade routes, and we are seeing more activity in ship recycling yards, especially in Alang. According to cash buyer GMS, there is a sense of stability creeping back into the market after a challenging period for the industry.

However, there are still challenges to overcome. Recycling nation currencies are weakening, and steel prices are fluctuating. This has led to a drop in plate levels in Pakistan and Turkey, affecting sentiment in Gadani. Bangladesh is also experiencing a slowdown in activity at the bidding tables.

Looking ahead, both India and Bangladesh are expected to have key elections in the first quarter of 2025. This could lead to modifications in domestic infrastructure projects, boosting demand for steel from local yards. Despite low domestic demand for recycled steel in ship recycling nations this year, there is hope for improvement in the coming months.

Chinese businesses are gearing up for a stimulus package, which could impact steel plate prices globally. This, combined with Trump’s tariff announcement, is expected to influence supply, demand, and vessel pricing in the coming year.

Overall, the ship recycling market is showing signs of improvement, and we can look forward to a more stable and potentially lucrative market in the near future.