Related News

Home » Business » Transport

New orders for Chinese shipyards sink

NEW orders for Chinese shipyards sank 96 percent in the first five months of this year, the Ministry of Industry and Information Technology said yesterday.

The total value of output by domestic shipyards reached 203.3 billion yuan (US$30 billion) from January to May, a jump of 38.8 percent year on year, according to a statement on the ministry's Website. The growth rate was down 18.7 percentage points from the year-earlier period, the statement said.

New ship orders in the first five months totaled 1.18 million deadweight tons, a plunge of 96 percent from the same period last year.

New orders last month stood at 190,000dwt and total orders held by Chinese shipbuilders were 192.2 million dwt by the end of last month, down 6 percent from that at the beginning of this year.

"The weak demand in the shipping market will cause more ship owners to cancel their orders," Changjiang Securities wrote in a research report. It added that economic conditions for new ships delivered are still uncertain.

The domestic shipyards exported vessels valued at 96.8 billion yuan in the five-month period, a rise of 25.8 percent from the same period a year ago. Ships completed over the period reached 12.2 million dwt, a jump of 61 percent from the same period last year.

The ministry announced details to boost the shipbuilding industry early this month. It will ban new shipyards from being formed within the next three years and will also urge qualified shipbuilders to list shares and issue bonds.

"The prices for new ships may continue to drop before the end of the year and dismantling old vessels may help the industry," said Zhu Rujing, a consultant at China Shipbuilding Industry Research Center.


Copyright © 1999- Shanghai Daily. All rights reserved.Preferably viewed with Internet Explorer 8 or newer browsers.

沪公网安备 31010602000204号

Email this to your friend