Tariffs Destabilizing Ship Recycling Market

The effects of the US 25% tariffs announced on Chinese steel and aluminum products is already seeing destabilizing effects on ship recycling markets, says cash buyer GMS.

“It remains unsure as to where much of this surplus / excess and resultingly cheaper steel will end up, devastating ship recycling prices.”

Compounding market uncertainties have taken center stage, says GMS, with President Trump’s “uncalculated tariff wars sending economies rocking this week, unintentionally targeting the U.S. dollar as the beneficiary to a crisis that is still unfolding, sending it into a tizzy as it declined against nearly all of the major ship recycling destinations, except? You guessed it, Turkey, where it plummeted nearly 0.5% this week, creating an all-time record low.”

Downward pressure on tabled prices has remained unrelenting since the start of the year and the ongoing and intolerable performances of key fundamentals has continued to push levels down ever since USD 600/Ton was achieved back in January 2024. Flatlining steel plate prices across the board including declining levels from India that have fallen in excess of $11/ton over the course of two weeks alone, has done little for prevailing offerings.

Over the course of last year, both India and Pakistan