GMS offers insights into the global ship recycling industry in 2023

In 2023, the global ship recycling industry saw an increase in the number of vessels recycled compared to the previous year, but it still fell short of the number needed to balance out global fleets. The industry also experienced fluctuating prices, with peaks well above USD 600/LDT in the first half of the year, followed by a collapse during the summer and monsoon season. This resulted in losses for ship owners, cash buyers, and vessel recyclers. Financing issues continue to persist in Pakistan and Bangladesh, with domestic banks unwilling to sanction new financing on vessel purchases, despite increasing demand and emptying domestic yards. However, there is cause for cautious optimism, as international steel and commodity prices remain firm, and currencies have been fluctuating within an acceptable range.

Despite the challenges faced by the ship recycling industry in 2023, there is hope for improvement in the coming year. International steel and commodity prices remain firm, and currencies have been fluctuating within an acceptable range. Additionally, incoming IMF loans could potentially alleviate funding hurdles for banks in Bangladesh and Pakistan. Overall, while the industry experienced difficulties and losses in 2023, there is optimism for a more positive outlook in the future.

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