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Ship price rises but steel price, shipbuilding cost pressure is difficult to resolve
The price of ships cannot rise but that of steel. this problem not only troubles Chinese shipping companies, but also makes life difficult for Koreans ...
From may 7 to 14, the price of China's major shipping board trading market rose slightly. Specifically, on may 14, the average price of 10mm planks was 4950 yuan / ton, up 8 yuan / ton from the previous one. The average price of 20 mm planks is 4846 yuan / ton, up 6 yuan / ton from the previous one.
Recently, the demand for steel terminals has dropped somewhat due to weak high-level transactions and frequent rain weather. domestic spot steel prices have fallen slightly. On may 11, the domestic spot steel composite index closed at 152.08 points, down 0.80 % from the previous week. At present, the supply and demand situation of domestic steel market is relatively healthy, the turnover and inventory digestion still have a good performance on the whole, and the willingness of steel mills to support prices is also strong. therefore, the domestic steel prices will show an upward trend of volatility in the short term.
In terms of board price, its price increase has left the price increase of new ships far behind. According to the data of China shipbuilding industry economic and market research center, the price of 62,000 dwt bulk carriers increased by 7.9 % in 2017, which is a relatively good ship type in the market. However, the price of 6mm planks rose 21.2 % and 20mm planks rose 20.6 % over the same period. Although the nominal price of new ships has slightly rebounded from the bottom, changes in the price of ship boards and exchange rates have kept the actual price of new ships at the bottom.
Since the beginning of this year, the order for new ships in our country has picked up obviously, and the increase in demand for ship boards has further supported the increase in the price of ship boards. The ship board production has the characteristics of organizing and implementing according to orders. from January to March 2018, it showed a trend of expanding month by month. Statistics from the China iron and steel association show that the national ship board output in January was 630,000 tons, up 60,000 tons year on year, up 10.6 %. The output in February was 630,000 tons, up 100,000 tons year on year, up 18.3 %. The output in March was 650,000 tons, up 110,000 tons year on year, up 20.5 %.
In addition to the market price, the scientific and technological innovation of marine steel products is also closely related to the marine industry. Recently, the 2018 award-winning projects recommended by the China iron and steel association and the China metals association for metallurgical science and technology have been publicized. The development and application of key preparation technologies for high-quality duplex stainless steel sheet series, and the development and industrial application of low-temperature ductile structural steel sheets for arctic and offshore cold regions are on the list. Industry insiders suggest that some conventional marine steel products should focus on solving the problem of stable and balanced quality, while a number of key technologies and key varieties should strive to achieve breakthroughs through increasing scientific and technological innovations by advantageous enterprises.
The rise in ship prices is not worth the rise in steel prices!
South Korea's three largest shipping companies worry about deteriorating order competitiveness
According to south Korea's Asian economy, three major south Korean shipbuilding enterprises, Hyundai heavy industries, Samsung heavy industries and daewoo shipbuilding ocean, were originally expecting to receive high-priced shipping orders soon, but the hidden worries of rising steel prices prevented them from keeping optimistic expectations about the future.
Hyundai heavy industries, which recorded a deficit of 132.1 billion won ( about 123 million us dollars ) in the first quarter of this year, released its first-quarter results at a meeting held on may 3. the company's shipping business department received orders for new ships in the first quarter equivalent to that of last year. However, relevant officials of Hyundai heavy industries said that the total amount of new ship orders received by its three shipyards in the first quarter of this year was 2.7 billion us dollars, which was only 20.4 % of the total annual target of 13.2 billion us dollars. the main reason for this result was not that the orders were insufficient, but that the shipyards had been negotiating with shipowners for a long time in order to obtain higher ship prices.
The person in charge of Hyundai heavy industry's shipping business department said that the company is currently negotiating with many shipowners for cooperation on new ships, expecting substantial increases in the price of ships compared with last year. For example, modern merchant ships have ordered 20 super-large container ships in modern heavy industries. modern merchant ships are optimistic about the stable prices of these ships in the future. In addition, insiders from Hyundai heavy industries said that by ensuring the stability of orders and the increase in ship prices, the company could concentrate on improving efficiency.
Daewoo shipbuilding co., ltd. has achieved quite good results since the beginning of this year. the amount of orders received has reached more than 30 % of the annual order receiving target. In particular, this year the company received orders for liquefied natural gas ( LNG ) vessels, accounting for about 50 % of the total orders received by south Korean shipping companies, showing strong market competitiveness. At present, the company has not released its first-quarter operating results and is expected to make a profit.
South Korean industry insiders predict that starting from 2020, the shipbuilding industry will usher in a new stage of prosperity due to the formal implementation of various new environmental protection regulations of the international maritime organization ( IMO ) and the increase in orders for new ships.
" however, the rise in steel prices will become the biggest stumbling block to the recovery of the shipbuilding industry. The above-mentioned south Korean industry insiders said that the continuous increase in reserve for shipbuilding enterprises is precisely to cope with the serious deterioration of order competitiveness that may occur in the future. " shipbuilding enterprises are looking forward to improving the current sluggish operating performance, but if steel prices continue to rise in the second half of the year, the order competitiveness of shipping enterprises will deteriorate, so they cannot maintain an optimistic attitude towards the future.
 
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