It's too early to say the shipbuilding industry is recovering

2013-06-21 09:56

Recently, while global shipbuilding orders are on the rise, industry experts point out that despite the significant increase in orders, a market recovery is still premature.

Recently, according to a report by the Daily Economic News, new orders received in 2013 increased compared to last year, but order prices are at a historic low, and ship owners' down payments have been reduced to 20-30%, and the pressure on shipbuilding enterprises has not decreased. Publicly available information shows that in May, domestic shipyards received a total of 126 new shipbuilding orders, a month-on-month increase of 85.92%.

In addition to the wave of bankruptcies among small and medium-sized shipbuilding enterprises, industry insiders revealed that a large shipbuilding enterprise in Jiangsu is also facing a crisis due to problems with bank loans.

On June 18, Zhang Guangqin, president of the China Shipbuilding Industry Association, told reporters from the Daily Economic News that the increase in new orders does not mean that the industry situation is improving. While the offshore engineering business is indeed doing better, it has high technical requirements and low order prices.

After facing difficulties in receiving orders and low profits in traditional businesses, shipbuilding enterprises have turned to offshore engineering as a necessary choice. Zhang Guangqin told reporters that currently, the prices of offshore engineering platforms received domestically are also not high, so orders should be cautious and not blindly accepted.

Some shipbuilding enterprises in Zhoushan, Zhejiang Province, said that due to their high added value and broad prospects, they are transforming into the offshore engineering equipment industry, and the local government is also providing policy support in this area.

Du Jiaxuan, a mechanical industry researcher at CITIC Securities, told reporters from the Daily Economic News that because ocean development will be a major focus of future economic development, the offshore engineering field has been exceptionally prosperous in recent years, and many shipbuilding enterprises want to enter the offshore engineering field. However, the high technical barriers in offshore engineering business prevent most shipbuilding enterprises from entering, and even for enterprises that have successfully transformed, how to gain a competitive advantage will be a new problem to face.

Industry experts also pointed out that offshore engineering has higher technical barriers, and currently, domestic shipbuilding enterprises mainly undertake self-elevating platforms, which are actually mainly offshore auxiliary vessels, and are different from complex deep-sea drilling platforms.

Yizheng's large shipyards receive stable orders, while some smaller shipyards face an uncertain future.

Jiangsu newbuild order volume increased significantly

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