Overview of Bangladesh Ship Recycling Industry
Bangladesh is one of the world's largest ship recycling countries. As of 2020, it processed about 30% of global recycling tonnage. Sitakunda yards near Chattogram are the core hub, and recycled steel (MS scrap) supplies major feedstock to the domestic steel industry. Approximately 200 to 250 large vessels are scrapped annually, creating direct and indirect employment for roughly 200,000 people.
Analysis by Ship Type
| Vessel Type | Units Recycled | Avg. LDT | Purchase Price | Main Suppliers |
|---|---|---|---|---|
| Bulk Carrier | 78 units | 12,000 LDT | USD 380/LDT | Greece, Japan |
| Tanker | 42 units | 18,000 LDT | USD 400/LDT | South Korea, Norway |
| Container Ship | 35 units | 10,000 LDT | USD 370/LDT | Germany, Denmark |
| General Cargo | 28 units | 5,000 LDT | USD 350/LDT | China, Turkey |
| Passenger/Others | 15 units | 8,000 LDT | USD 360/LDT | Japan, Italy |
| Offshore Structures | 12 units | 15,000 LDT | USD 390/LDT | Norway, UK |
The tanker segment receives the highest purchase price at around USD 400 per LDT, largely due to a higher share of high-quality steel plates. Korean owners' tankers and bulk carriers are generally in better condition, which attracts higher purchase prices.
Recycling Method Comparison: Beaching vs Dry Dock
Trend in Ship Recycling
Bangladesh's ship recycling industry accounts for 30% of global recycling tonnage and supplies 60% of domestic steel demand, making it a strategic industrial base. As the Hong Kong Convention prepares to enter into force, environmental and safety standards are being strengthened, and Korean ship owners can find cooperation opportunities in retired-ship sales and Green Recycling certification services.