India's ship recycling industry is expected to grow to 3.8-4.2-million GT (gross tonnage) in 2025, as against an estimated 2.3-2.6-million GT in 2024, according to a report.

Further, according to CareEdge, India accounts for 33 per cent of the global gross tonnage dismantled in 2023, second only to Bangladesh, which handled 46 per cent as detailed in a report by the Press Trust of India.

"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.

The PTI report further stated that, the ship recycling industry in India is expected to grow at compound annual growth rate of around 10 per cent in CY26-CY28, she said, adding cooling-off of Baltic Dry Index, stabilisation of heavy melting scrap prices, and increase in obsolete ships in operations, suggest that more ships will enter the recycling market from CY25 onwards.

Further, according to Shah, countries having better infrastructure and green recycling facilities are expected to attract a larger portion of ships in future. India's share in the global recycling industry remained around 27 per cent in the past, before increasing to around 33 per cent in CY22 and CY23, reflecting a rise in its contribution amidst global declines.

In terms of volume, in CY22 and CY23, India dismantled 2.26 and 2.47 million GT, respectively, CareEdge said. 

Ship recyclers are supported by favourable financial structure owing to low debt levels in lower ship recycling activities, low fixed overheads and contract-based employees in the operations. Further, Convergence of factors such as stability in freight and steel scrap prices with expected increase in availability of obsolete ships implies ship recycling activity will rise going forward, it said.

It also said that decline in global ship-recycling activities combined with stable addition in shipping capacity in recent years highlights the growing number of obsolete vessels still in operation.

As newer, more efficient vessels are introduced, older ships become increasingly unviable for operation. This trend creates a rising need for ship recycling, as operators seek to retire aging vessels that are no longer economically feasible to maintain, the ratings agency stated.

According to the report, the Indian ship recycling sector activity faced a decline amid rise in heavy melting scrap prices in FY23 and FY24.

Prices for heavy melting scrap at Bhavnagar, in Gujarat surged from Rs 28,800 per tonne in August 2020 to a peak of Rs 54,400 per tonne in April 2022, driven by supply chain disruptions and heightened demand for steel amid post-pandemic economic recovery efforts.<o:p></o:p>

However, after peaking, scrap prices began to decline, settling at Rs 39,900 per tonne in December 2023. Since January 2023, prices have stabilised between Rs 36,000 per tonne and Rs 44,000 per tonne, it said.

This recent stabilisation suggests that the market has adjusted to post-pandemic conditions, providing a more predictable cost structure for industries reliant on scrap metal, CareEdge stated.

India's ship-recycling industry is a crucial part of the global maritime sector with the top four countries -- Bangladesh, India, Pakistan, and Turkey -- ?dominating the ship-recycling industry, dismantling over 90 per cent of the global ship recycling volume, according to ICRA. In India, Alang in Gujarat is among the largest ship recycling facilities in the world with over 140 recycling yards.

India's ship recycling industry is expected to grow to 3.8-4.2-million GT (gross tonnage) in 2025, as against an estimated 2.3-2.6-million GT in 2024, according to a report.

India's ship recycling industry is expected to grow to 3.8-4.2-million GT (gross tonnage) in 2025, as against an estimated 2.3-2.6-million GT in 2024, according to a report. Further, according to CareEdge, India accounts for 33 per cent of the global gross tonnage dismantled in 2023, second only to Bangladesh, which handled 46 per cent as detailed in a report by the Press Trust of India. "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. The PTI report further stated that, the ship recycling industry in India is expected to grow at compound annual growth rate of around 10 per cent in CY26-CY28, she said, adding cooling-off of Baltic Dry Index, stabilisation of heavy melting scrap prices, and increase in obsolete ships in operations, suggest that more ships will enter the recycling market from CY25 onwards. Further, according to Shah, countries having better infrastructure and green recycling facilities are expected to attract a larger portion of ships in future. India's share in the global recycling industry remained around 27 per cent in the past, before increasing to around 33 per cent in CY22 and CY23, reflecting a rise in its contribution amidst global declines. In terms of volume, in CY22 and CY23, India dismantled 2.26 and 2.47 million GT, respectively, CareEdge said. Ship recyclers are supported by favourable financial structure owing to low debt levels in lower ship recycling activities, low fixed overheads and contract-based employees in the operations. Further, Convergence of factors such as stability in freight and steel scrap prices with expected increase in availability of obsolete ships implies ship recycling activity will rise going forward, it said. It also said that decline in global ship-recycling activities combined with stable addition in shipping capacity in recent years highlights the growing number of obsolete vessels still in operation. As newer, more efficient vessels are introduced, older ships become increasingly unviable for operation. This trend creates a rising need for ship recycling, as operators seek to retire aging vessels that are no longer economically feasible to maintain, the ratings agency stated. According to the report, the Indian ship recycling sector activity faced a decline amid rise in heavy melting scrap prices in FY23 and FY24. Prices for heavy melting scrap at Bhavnagar, in Gujarat surged from Rs 28,800 per tonne in August 2020 to a peak of Rs 54,400 per tonne in April 2022, driven by supply chain disruptions and heightened demand for steel amid post-pandemic economic recovery efforts. However, after peaking, scrap prices began to decline, settling at Rs 39,900 per tonne in December 2023. Since January 2023, prices have stabilised between Rs 36,000 per tonne and Rs 44,000 per tonne, it said. This recent stabilisation suggests that the market has adjusted to post-pandemic conditions, providing a more predictable cost structure for industries reliant on scrap metal, CareEdge stated. India's ship-recycling industry is a crucial part of the global maritime sector with the top four countries -- Bangladesh, India, Pakistan, and Turkey -- ?dominating the ship-recycling industry, dismantling over 90 per cent of the global ship recycling volume, according to ICRA. In India, Alang in Gujarat is among the largest ship recycling facilities in the world with over 140 recycling yards.

India's ship recycling industry set for significant growth by 2025

Days after 16 Indian sailors in the custody of Equatorial Guinea's navy appealed to the Indian government to help them return home, Equatorial Guinea's neighbour Nigeria released a detailed statement with fresh allegations and counter-clarifications. The ship Mt. Heroic Idun, carrying 16 Indian sailors as well as an unspecified number of sailors from Poland, Sri Lanka, and the Philippines, has now been handed over to the Nigerian Navy by Equatorial Guinea, the Nigerian government said in a statement on Friday.&nbsp;

ALSO READ |&nbsp;<a href="https://www.wionews.com/india-news/16-indian-sailors-unlawfully-detained-in-equatorial-guinea-for-over-three-months-531914">16 Indian sailors 'unlawfully' detained in Equatorial Guinea for over three months</a>

"The handover was carried out in Equatorial Guinea on November 6, 2022. It is now expected that the Vessel will return to Nigeria, for further investigations by the Nigerian Government," the statement said.&nbsp;

At the time of filing this report, WION can confirm that the Mt. Heroic Idun has arrived at Nigeria's Bonny Terminal-II under naval escorts. The Nigerian navy is likely to issue a statement.&nbsp;

Nigeria has accused the vessel Mt. Heroic Idun of entering the restricted zone around an oilfield without authorisation, illegally attempting to load crude oil from Nigeria without appropriate documentation which, it said, 'is tantamount to economic sabotage'. Nigeria has also alleged that the ship with Indian sailors onboard falsely accused the Nigerian Navy ship of piracy.

The family members of detained Indian sailors have said that the vessel was told to leave the Nigerian waters by authorities citing they did not have prior information about their arrival. However, a family member of the ship's master Tanuj Mehta added, as the ship moved towards Equatorial Guinea, it was followed by a Nigerian Navy ship which issued an alert. As a result, the ship was detained when it arrived in Equatorial Guinea in mid-August, the concerned family member of detained Indian shipmaster said.&nbsp;

We are in touch with detained sailors: India

India's Ministry of External Affairs informed issued a statement on Saturday saying&nbsp;that it is constantly monitoring the developments in the Africa's West coast.&nbsp;

"Our missions in Malabo, which is the capital of Equatorial Guinea, and in Abuja of Nigeria, are closely engaged with their respective local authorities in this case. We are also in touch with the detained sailors," Arindam Bagchi, spokesperson of India's Ministry of External Affairs said.

"We have actually had several rounds of consular access to these sailors and we are making all efforts for the early resolution of this issue," he added.

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Days after 16 Indian sailors in the custody of Equatorial Guinea's navy appealed to the Indian government to help them return home, Equatorial Guinea's neighbour Nigeria released a detailed statement with fresh allegations and counter-clarifications.

Days after 16 Indian sailors in the custody of Equatorial Guinea's navy appealed to the Indian government to help them return home, Equatorial Guinea's neighbour Nigeria released a detailed statement with fresh allegations and counter-clarifications. The ship Mt. Heroic Idun, carrying 16 Indian sailors as well as an unspecified number of sailors from Poland, Sri Lanka, and the Philippines, has now been handed over to the Nigerian Navy by Equatorial Guinea, the Nigerian government said in a statement on Friday. ALSO READ | 16 Indian sailors 'unlawfully' detained in Equatorial Guinea for over three months "The handover was carried out in Equatorial Guinea on November 6, 2022. It is now expected that the Vessel will return to Nigeria, for further investigations by the Nigerian Government," the statement said. At the time of filing this report, WION can confirm that the Mt. Heroic Idun has arrived at Nigeria's Bonny Terminal-II under naval escorts. The Nigerian navy is likely to issue a statement. Nigeria has accused the vessel Mt. Heroic Idun of entering the restricted zone around an oilfield without authorisation, illegally attempting to load crude oil from Nigeria without appropriate documentation which, it said, 'is tantamount to economic sabotage'. Nigeria has also alleged that the ship with Indian sailors onboard falsely accused the Nigerian Navy ship of piracy. The family members of detained Indian sailors have said that the vessel was told to leave the Nigerian waters by authorities citing they did not have prior information about their arrival. However, a family member of the ship's master Tanuj Mehta added, as the ship moved towards Equatorial Guinea, it was followed by a Nigerian Navy ship which issued an alert. As a result, the ship was detained when it arrived in Equatorial Guinea in mid-August, the concerned family member of detained Indian shipmaster said. We are in touch with detained sailors: India India's Ministry of External Affairs informed issued a statement on Saturday saying that it is constantly monitoring the developments in the Africa's West coast. "Our missions in Malabo, which is the capital of Equatorial Guinea, and in Abuja of Nigeria, are closely engaged with their respective local authorities in this case. We are also in touch with the detained sailors," Arindam Bagchi, spokesperson of India's Ministry of External Affairs said. "We have actually had several rounds of consular access to these sailors and we are making all efforts for the early resolution of this issue," he added. WATCH WION LIVE HERE You can now write for wionews.com and be a part of the community. Share your stories and opinions with us here.

India calls for early resolution as detained ship with 16 Indian sailors onboard reaches Nigeria

Afghanistan is all set to use Chabahar to connect to India. According to Iran's Ministry of Roads and Urban development, Afghanistan is preparing to ship the first cargo of 5 containers through Chabahar to India and this will happen within a months time.&nbsp;

The cargo will contain mung beans and each container will weigh about 22 tons. The delivery of cargo will be carried out under theInternational Road Transports (TIR) system.

According to Afghanistan's ministry of foreign affairs and transport quoted by Iranian ministry, "this cargo will be shipped as a pilot form Afghanistan to India."

TIR system streamlines procedures at borders and reduces the administrative burden for customs authorities.

<img alt="Chabahar port" data-entity-type="file" data-entity-uuid="20526c6d-c8a5-4002-a3f1-23ec27e0df78" src="/sites/default/files/inline-images/Port%281%29.jpg" />

Meanwhile, India has formally established shipping lines to Chabahar. The first such ship arrived on Sunday. This was announced in a release from the Iranian Prime Minister's office. &nbsp;

It has been decided that regular ships from 3 Indian ports --Mumbai, Kandla and Mundra will now regularly go to the Iranian port every 2 weeks.

The director general of Sistan-Baluchestan Ports and Maritime Organisation Behrouz Aqayee said in the release, "With the arrival of the first 3700TEU container at Shahid Beheshti Chabahar port, for the first time, the shipping line between the ports of Mumbai-Mundra-Kandla have opened".

The development comes a month after India took over operations at the port. The Commercial operations at the port began on 30th December with the arrival of a Cyprus registered bulk carrier with 72458 MT of corn cargo. The vessel MV Macheras berthed at the terminal on 30th December 2018. This is the first time India will be operating a port outside its territories.

The port is crucial for India's connectivity to Afghanistan and to Central Asia and North-South Transport Corridor that connects Mumbai to Moscow.

The port is very important for landlocked Afghanistan which is keen to get connect itself with international markets. It already has an air corridor with India, opened in 2017.

Uzbek ambassador to India, Farhod Arziev speaking to WION has said "Any projects that can help Uzbekistan to reach the international market we see positively. The projects like Chabahar creates an opportunity for central Asia."

Afghanistan is all set to use Chabahar to connect to India. According to Iran's Ministry of Roads and Urban development, Afghanistan is preparing to ship the first cargo of 5 containers through Chabahar to India and this will happen within a months time.

Afghanistan is all set to use Chabahar to connect to India. According to Iran's Ministry of Roads and Urban development, Afghanistan is preparing to ship the first cargo of 5 containers through Chabahar to India and this will happen within a months time. The cargo will contain mung beans and each container will weigh about 22 tons. The delivery of cargo will be carried out under theInternational Road Transports (TIR) system. According to Afghanistan's ministry of foreign affairs and transport quoted by Iranian ministry, "this cargo will be shipped as a pilot form Afghanistan to India." TIR system streamlines procedures at borders and reduces the administrative burden for customs authorities. Meanwhile, India has formally established shipping lines to Chabahar. The first such ship arrived on Sunday. This was announced in a release from the Iranian Prime Minister's office. It has been decided that regular ships from 3 Indian ports --Mumbai, Kandla and Mundra will now regularly go to the Iranian port every 2 weeks. The director general of Sistan-Baluchestan Ports and Maritime Organisation Behrouz Aqayee said in the release, "With the arrival of the first 3700TEU container at Shahid Beheshti Chabahar port, for the first time, the shipping line between the ports of Mumbai-Mundra-Kandla have opened". The development comes a month after India took over operations at the port. The Commercial operations at the port began on 30th December with the arrival of a Cyprus registered bulk carrier with 72458 MT of corn cargo. The vessel MV Macheras berthed at the terminal on 30th December 2018. This is the first time India will be operating a port outside its territories. The port is crucial for India's connectivity to Afghanistan and to Central Asia and North-South Transport Corridor that connects Mumbai to Moscow. The port is very important for landlocked Afghanistan which is keen to get connect itself with international markets. It already has an air corridor with India, opened in 2017. Uzbek ambassador to India, Farhod Arziev speaking to WION has said "Any projects that can help Uzbekistan to reach the international market we see positively. The projects like Chabahar creates an opportunity for central Asia."

Chabahar port: Indian ships every two weeks; Afghan goods from next month to India from the port

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India's ship recycling industry set for significant growth by 2025

India calls for early resolution as detained ship with 16 Indian sailors onboard reaches Nigeria

Chabahar port: Indian ships every two weeks; Afghan goods from next month to India from the port