This Tokyo edition of Inside the Markets from GMS Podcasts explores how Japanese shipowners are managing a calm but strategic recycling environment under the newly enforced Hong Kong Convention.
Host Jamie Dalzell, Head of GMS Singapore Office, speaks with Amit Malhotra, Head of GMS Japan Office, about the country’s continued focus on compliance, foresight, and sustainable operations amid a quieter global recycling market.
Market Pulse:
Japan’s recycling activity remains limited while freight earnings stay firm.
Steel prices in the high USD 300s, with India below USD 400 per ton and Bangladesh around USD 420 per ton
Buyers across South Asia remain cautious due to currency volatility
Japanese owners continue trading longer amid stable freight conditions
Owner Strategy:
Priority on compliance and safety rather than short-term pricing
Long-term planning and disciplined decision-making remain key
GMS provides tailored solutions that combine commercial and technical expertise
Japanese owners increasing participation in GMS’s Sustainable Ship and Offshore Recycling Program (SSORP)
Growing demand for IHM Parts I, II, and III to ensure readiness for future regulation
GMS recognized as both a cash buyer and technical partner in sustainable recycling
Steam turbine LNG carriers remain likely candidates for recycling into early 2026
Broader recycling activity expected to stay limited through late 2025
SSORP and IHM adoption expected to rise steadily across Japanese owners
Freight markets stable but vulnerable to global corrections
Owners expected to prioritize trading through year-end
Compliance preparation continues to strengthen Japan’s position ahead of future regulatory shifts
From Tokyo to the subcontinent, Japan’s message for October 2025 is clear: trade smartly today, recycle responsibly tomorrow.
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