Highly volatile global market conditions are forecast to keep shipbuilding prices at the current lows, according to Singapore-based shipbuilding and dry bulk shipping group COSCO Corporation.

The Clarkson Newbuilding Price Index peaked at 140 points in mid-2014 before declining to 138 in December 2014. Correspondingly, the China Newbuilding Price Index had recovered steadily in 2013 and reached a high level of 960 points in mid-2014 before ending at 939 in December 2014.

COSCO's Vice Chairman and President Wu Zi Heng believes that the prices may not recover any time soon.

"We foresee near-term price weakness in the face of the global tonnage surplus that has grown with a younger fleet. This is expected to curtail appetite for investment in newbuilds," Wu said, expressing great concern about credit availability from cautious lenders to the maritime industry.

"The outlook for market for newbuilds is expected to be lacklustre, but we expect to see a resilient market for dual-fuel eco-friendly ships, LNG carriers and special purpose vessels with higher specifications," added Wu.