Four Million Gross Tonnage of Ships Expected to Be Scrapped
From Our Correspondent, Chattogram: The year 2025 is being seen as a turning point for the global ship scrapping market. After a prolonged slowdown, nearly four million gross tonnage worth of vessels are forecast to be scrapped this year. Among the major global centers, Bangladesh’s Chattogram coast has drawn the most attention, as local buyers are offering the highest prices for scrap vessels. Outpacing India and Pakistan—the two other major South Asian hubs—Bangladesh continues to secure a dominant position in this market.
According to international and local sources, Chattogram-based buyers are currently offering between USD 460 and 490 per ton of lightweight displacement tonnage (LDT)—the highest worldwide. In comparison, buyers in Alang, India, are offering between USD 435–460, while those in Gadani, Pakistan, are paying USD 440–470. European centers, such as Aliaga in Turkey, lag far behind, with offers ranging from only USD 280–300. Analysts say Bangladesh’s consistently strong prices are driven by robust local demand for scrap steel and the ability to directly produce rebar for construction from dismantled vessels.
In 2024, global ship scrapping fell to a 20-year low, with only 324 vessels dismantled, amounting to around 4.6 million gross tonnage—nearly 30% less than the previous year. However, the trend is shifting in 2025. Experts believe that rising global steel prices and the declining efficiency of aging vessels are pushing more owners to send ships for recycling.
For Bangladesh, this industry is of critical economic importance. On average, dismantled vessels in Chattogram yield 2 to 2.5 million tons of steel annually, meeting nearly half of the country’s total demand for construction rebar. Thus, ship scrapping is not just an industry but a vital lifeline for Bangladesh’s construction sector. Additionally, the industry provides employment for hundreds of thousands of workers, both directly and indirectly.
Bangladesh’s ship recycling yards are also undergoing significant upgrades to comply with international standards. Notably, efforts to adopt safe and environmentally sustainable practices in line with the Hong Kong Convention have boosted the confidence of foreign shipowners. This is enhancing Bangladesh’s global reputation while paving the way for more vessels to be directed toward Chattogram in the future.
According to analysts, Chattogram is now not only South Asia’s but one of the world’s leading ship recycling hubs. The combination of top dollar offers and steady domestic demand gives Bangladesh a competitive edge. If this trend continues, the country is poised to secure an even larger share of the global ship scrapping market in the coming years.
