As of December 28, 2024, the global ship recycling market remains subdued, reflecting weak activity and pricing across major recycling destinations. Best Oasis has reported that India saw several vessels offered for recycling; however, low demand for scrap steel has led to reduced prices in the region [a4df49c3].
In Bangladesh, the ship recycling market is experiencing stagnant conditions, with limited purchasing activity contributing to the overall lack of momentum. Similarly, Pakistan's market mirrored this sentiment, showing no significant changes in activity [a4df49c3]. Turkiye's ship recycling sector also remains static, indicating a broader trend of subdued market conditions across these key regions [a4df49c3].
Looking ahead, global growth for 2025 is projected at 2.5%, with emerging markets like India expected to grow at a rate of 3.5% to 4%. However, several challenges loom over the industry, including rising U.S. tariffs, weaker demand from China, and high energy costs in the eurozone [a4df49c3].
India's economic landscape is under pressure, with the trade deficit hitting a record $37.84 billion in November 2024, prompting concerns about the sustainability of its growth in the ship recycling sector [a4df49c3]. Meanwhile, Bangladesh has requested support from the International Monetary Fund (IMF) due to its economic challenges, further complicating the market dynamics [a4df49c3].
In Pakistan, the State Bank has responded to economic pressures by cutting its key policy rate by 200 basis points to 13%, which may influence the ship recycling market as well [a4df49c3]. Additionally, the upcoming enforcement of the Hong Kong Convention in June 2025 is expected to prompt recyclers to upgrade their facilities, potentially impacting the market in the long term [a4df49c3].