Inflation and Steel Prices Impact Ship Recycling Markets
“Inflation is on the rise again, plate prices are collapsing in the wrong places, all while the U.S. dollar continues to rummage through the wreckage of 2025 for whatever it can suck out of ship-recycling currencies and both freight rates and oil futures tumble in unison,” reports cash buyer GMS, “just within the span of week 50.”
The Baltic Exchange Dry Index reportedly fell nearly 4%, down to its lowest level in nearly a month, dragged by capes that fell 5.6%. Panamax followed suit with a 2.1% drop, and smaller vessels wrapped up the cold blanket with a 16-basis-point drop as the cherry on top, says GMS.
And, surprising many industry traders, oil futures failed to hit the much-anticipated USD 60/barrel mark, instead retreating over 3% to USD 57.61/barrel as the week clocked out — amidst global fears primarily brought on by forecasts predicting an overproduction of oil. The International Energy Agency reaffirming its forecast for a “record supply glut.”
Local steel plate prices seemed to slip on the spilling oil figures as they, too, followed suit with noteworthy drops of their own, compounded by slipping currencies as the U.S. dollar continues to rattle major trading economies.
Indian sub-continent ship-recycling markets were already declining, after an inadequate and underwhelming few years of horrid supply and ever-declining levels. USD 600/ton was breached back in January 2024, and for a great majority—standing at the doorstep of 2026, and across all sub-continent locations—prices have dipped below the USD 400/ton mark.
While several green vessels have been sold cheaply into Bangladesh over recent weeks, prices here seem to have slipped off the back of a spate of recent deliveries pulling local levels down.
GMS demo rankings / pricing for week 50 of 2025 are:
