Chinese shipbuilding industry seems definitely to be in crisis, with bad news being told, such as escape of Dong Fang Shipbuilding's president, etc.
The Chinese government is now working on solving problems of Dong Fang, however, just a few additional companies would be possibly supported by the government.
Other than financial difficulties, Chinese yards are facing depressed shipping market, decreasing new order, etc.
Market player in China said that shipowners were having troubles in making a payment and kept pushing shipbuilders in a liquidity squeeze. Moreover, declining proportion of down payment pressures shipbuilders' funding.
China's Shenyin & Wanguo Securities forecast that shipbuilding market shows no sign of recovery this year and would not exceed 60m dwt of order contracts in 2012.
Shenyin & Wanguo said that Chinese shipbuilders' orderbook as of the end of January plummeted by 22% to 159m dwt, year-on-year. As newbuildings, ordered in a boom period, had mostly been delivered already, this year would be much harsher period.