Chinese shipbuilding industries forecast that recent troubles would be hard to be recovered in a short period.
China Securities Journal reported that Chinese shipbuilding industries had had a boom from 2004 to 2010, but things started to go difficult from last year. Some private shipyards are even going bankruptcies.
Also, it pointed out that Chinese shipyards would take enough time to overcome current depression and during the period, they should carry out R&D and get over increasing production cost and declining productivity.
Amid global economic depression and overtonnage, decreasing demand pressures down newbuilding price as well, which has dropped over 40% comparing to that from the boom period and over 10% on the end of last year.
A market player said that with labor cost rising 12% every year, China has begun to lose edge on price competitiveness.