India's Ship Recycling Sector to Grow 10% by 2026 with Obsolete Fleet Rise

The ship recycling sector in India is projected to increase by approximately 10 per cent annually from CY26-CY28. The decrease in Baltic Dry Index, steadying of heavy melting scrap prices, and rise in obsolete ships being used indicate that more vessels will be entering the recycling market starting from CY25.

A report predicts that the ship recycling sector in India will increase to 3.8-4.2 million gross tonnage by 2025, up from an estimated 2.3-2.6 million GT in 2024. CareEdge reports that India dismantled 33% of the global gross tonnage in 2023, coming in second place after Bangladesh, which dismantled 46%.

"India's ship recycling Industry is poised for major growth in CY25 and is expected to witness similar recycling level in CY24 with an estimate of 2.3 to 2.6 million GT, thereafter a jump to over 3.8 to 4.2 million GT in CY25," said Sajani Shah, Assistant Director at CareEdge.

Shah believes that nations with improved infrastructure and eco-friendly recycling capabilities will likely see an increase in ship traffic.

India's portion of the worldwide recycling sector stayed at approximately 27 percent previously, but rose to about 33 percent in CY22 and CY23, showing an increase in its involvement despite global decreases. During CY22 and CY23, India scrapped 2.26 and 2.47 million GT in terms of volume, according to CareEdge.