According to a report released by the China Association of the National Shipbuilding Industry (CANSI) on January 25, due to fewer orders held, the lower price of completed ships, and higher production costs, China’s shipbuilding industry is expected to continue to perform poorly this year. Approximately 55 million dead weight tons (DWT) of ships are expected to be constructed, and the number of new orders is likely to increase slightly, but the number of orders held may drop to below 100 million DWT.
Statistics from the CANSI show that over the first eleven months of 2012, shipbuilding enterprises above designated size generated total profit of 28.8 billion yuan, down 29.1 percent year-on-year (YoY). Specifically, the profit from ship construction was 22.5 billion yuan, down 35.3 percent YoY, the profit from ship supporting was 4.43 billion yuan, up 1.8 percent YoY, and the profit from ship repair was negative 90 million yuan, down 134 percent YoY.