Impact of Trade War on Ship Recycling Prices and Market Trends in 2025

Ship Recyclers Can Expect Falling Prices
The trade war and tariffs have caused a drop in recycling vessel prices, with an increase in older vessels entering the market. Despite stable dry bulk rates, the flow of tonnage continues due to the strong U.S. Dollar and low steel plate prices. GMS's demo rankings provide insight into the industry's challenges and opportunities.
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The ongoing trade war and subsequent tariffs are leading to a decline in recycling vessel prices, as reported by cash buyer GMS. Older vessels that had their expiration dates extended due to global events and high charter rates in 2023 and 2024 are now entering the market in higher volumes. This influx of tonnage has led to a surge in arrivals at waterfronts since the beginning of 2025, despite a decrease in offers.

Despite dry bulk rates stabilizing and even climbing in January 2025, the flow of recycling tonnage into the market has not slowed down. The U.S. Dollar’s strength in the currency market has had a significant impact on ship recycling, particularly affecting India. This, coupled with stagnant or declining steel plate prices, has resulted in cooling vessel offers in sub-continent markets.

GMS has released its demo rankings and pricing for the sixth week of 2025, showing the current state of the ship recycling industry. The rankings reflect the impact of the trade war on vessel prices and the influx of older tonnage into the market. This data provides insight into the challenges and opportunities facing the ship recycling industry in the coming months.

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