Recycling Markets, As the world economy winds down from a turbulent 2024, the spotlight has shifted to what 2025 holds in store for the different sectors. Traditionally, the week between Christmas and New Year is a quiet one for trade, and this year, global trade and the ship recycling sector were noticeably muted, especially in India and Bangladesh. These two big shipbreaking yards saw currencies become highly volatile in nature, while the respite against the US Dollar further ensured quieter port operations.
The Baltic Dry Bulk Index, which had been strong all year, declined sharply in the fourth quarter. The index recorded the sharpest annual decline in 2014 at 52.5%. The indices for Capesize, Panamax, and Supramax declined by 66.7%, 48.7%, and 32%. On the other hand, recycling vessels’ supply rose and remained higher than what the wet sector experienced before 2025.
A new year for 2024 brings further great progress in ship recycling. Some major players in the Indian subcontinent are upgrading their facilities to conform to international safety and environmental standards, particularly the Hong Kong Convention (HKC). The hope is that in 2025, Pakistan and Bangladesh will see further upgrading ahead of the implementation of HKC in the middle of the year.
However, the ship recycling market has been through a lot. Steel prices fell, and Indian and Pakistani steel plate prices plummeted over USD 150/ton, whereas Bangladesh and China hardly moved. Still, the yards are readying themselves for busier days ahead as the supply of recycling tonnage is expected to rise with charter rates, which had been strong, starting to wane.
Going forward, the ship recycling industry looks toward a recovery year based on volumes and regulation changes. Yet the volatility would not dissipate fully, as it will also continue with added uncertainties in political stability within the Indian subcontinent.
To Read More: Business