Demand analysis of shipbuilding steels in 2009

Posted:5/27/2011 11:09:28 AM

It is reported that in January to September the gross output value and export delivery value of China ship industry both presented two digit growths but slower ones compared with last year.
The completion of new ships posted large growth however new ship orders continued declining for 12 months. The impact of financial crisis on ship industry became more obvious and the operation situation didn’t show visible signs of improving.
1 ship plate output fell largely, price lingered at low level
According to China Iron & Steel Association statistics, China produced 7.41 million tonnes of ship plates in January to July a decrease of 3.88 million tonnes from the same period of last year or down 40.7%. In July the ship plate output posted at 1.25 million tonnes falling 34%..
The statistics showed that the outputs stayed steady in a similar level in May, June and July. During those months, mills experienced fine orders mainly for exports and direct supply. They cut down domestic traders’ orders or raised order price to alleviate the oversupply in domestic market.
2 Mills raised ship plate price
In August affected by iron ore spot price upswing, domestic mills lifted their Aug and September ship plate ex-works prices. The statistics suggested that price for 20mm CCSB ship plate averaged CNY 4050 per tonne in July in 9 key cities of China up by CNY 150 per tonne . August delivered price rose up by CNY 200 per tonne to CNY 500 per tonne and Baosteel and Wuhan Steel lifted their September delivered price up by over CNY 700 per tonne.
3 Ship plate price remained low
As to the future price, Insiders thought that ship plate market price would remain the low level in short time, though mills run their Aug and September ex works price up. Intensive liquidity and low ship demand, adding postpone in ship delivery, made most of shipbuilders wait and see. Feeling the declining demand, shipbuilders didn’t buy steels in large size
 

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