Steel Prices Down as Ship Recycling Slows

Economic turmoil is causing inflation to keep rising at key ship recycling destinations, says cash buyer GMS. Global steel prices are collapsing, currencies are devaluing, and a disjointed ratio of trading units versus recycling volumes, are all wrapped up in a 2025 burrito of unnecessary bombastic.

“As sanctions and bans increasingly strike at the world’s trading units and the balance of the legally trading group seems increasingly burdened with shouldering the load of missing tonnage, which itself cannot even be recycled anywhere, it is certainly starting to show at the waterfront once again. And for the world of ship recycling, is a disastrous turn of events as 2026 is already at attention on the horizon.”

At the micro end, an increasingly defunct sub-continent ship recycling sector is struggling to attain anywhere near reasonable / expected levels for another week as any vessels that are being proposed, are swiftly greeted with disappointing levels and are subsequently withdrawn to trade another day, says GMS.

“Levels in both Pakistan and India have sunk firmly below USD 400/LDT as Bangladesh similarly struggles with declining steel prices and a viciously inert demand but still manages to remain just above USD 400/LDT. Apart from the odd LNG and older handymax bulkers with surveys due, there has been very little supply keeping recyclers active.

“On the flip side, this shortage has perhaps been a blessing in disguise as Hong Kong Convention upgrades continue at pace in both Bangladesh and (reportedly) Pakistan.

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