New orders in global shipbuilding industry showed an increasing trend during January, 2013, both year-on-year and month-on-month, however, it is said that recovery in the industry still has a long way to go.
According to a data from Shenyin & Wanguo Securities of China, the shipbuilding industry contracted a total of 6.98mDWT globally, showing a 47% increase against the previous month and a 32% increase compared to the same period in 2012.
As for contracts for bulker, it showed a 28% decrease from a year ago with 2.37mDWT, while a total of 2.9mDWT of tankers were ordered showing an increase by 89% compared to January in 2012. Orders for containerships also showed a growing trend with 110,000DWT against the same period of last year.
Shenyin & Wanguo prospected that global new orders will total around 50mDWT during the full 2013. The company also pointed out that new orders contracted earlier this year increased both month-on-month and year-on-year because the market downturn deepened greatly in 2012 and demands grew in some degree in a short term.
The company explained that although new orders grew in some degree, it is still too early to expect recovery in the industry, considering the market situation in 2010 and 2011; thus, annual order contracts for 2013 are anticipated as 50mDWT, a tad more than last year’s.
Meanwhile, the newbuilding price index of three major commercial ships showed a small decrease, according to a research at Shenyin & Wanguo. The newbuilding price index of bulker in January was 119p, down by 7.0% from a year earlier and tanker’s newbuilding price index marked 145p, also down by 4.6% compared to January, 2012, and down by 1.4% month-on-month. In terms of containership, it showed 72p, a 20% decrease in newbuildig price index year-on-year and 1.4% fall against the previous month.
Moreover, as for VLCC and aframax tanker, their newbuilding prices also fell by $1m and $500,000, respectively, month-on-month, to $92m and $47.5m, separately, while panamax and capesize bulker’s newbuilding price each totaled $25.75m and $46m, respectively, that both remained the similar level as the previous month.
Shenyin & Wanguo said that the recent shipbuilding price stayed at the lowest level in the industry's history without showing any notable change in January that the shipbuilding price is expected to stay at the low level for a while, affected by oversupply and a sharp decrease in new orders. Accordingly, gross profit margin of shipyards is also anticipated to be relatively low.
During the full January, new orders in Chinese shipbuilding industry marked 3.88mDWT, up by 125% and 300%, month-on-month and year-on-year, respectively, while those in Korean shipbuilding industry totaled 2.54mDWT, showing a 6.9% month-on-month drop with a 32.9% year-on-year rise and Japan’s new orders amounted to 420,000DWT, down by 81.2%, against January, 2012.
Orderbook by country of Korea, China and Japan showed 69mDWT, 110mDWT and 58mDWT, respectively, down by 37%, 36% and 27% against a year earlier.
Newbuilding deliveries in global shipbuilding industry during January, 2013, were calculated to be a combined 13.37mDWT, down by 30% year-on-year; of which, Korea, China and Japan delivered 4.71mDWT, 5.08mDWT and 2.66mDWT, in order, showing decreases of 26%, 28.9% and 25.7%.