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New Shipbuilding Prices on Increase with Market Escaping from Recession Doldrums
Global Shipbuilding Market
New Shipbuilding Prices on Increase with Market Escaping from Recession Doldrums
  • By matthew
  • November 19, 2013, 06:05
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With the global shipbuilding market steadily recovering, the upward trend of new building prices of Korea’s big three shipbuilders have been kicked into high gear.

According to London-based market researcher Clarkson Research Services on November 17, Clarkson’s new shipbuilding price index recorded 132 points on November 8, up 1 point from last week. As the amount of orders for bulk carriers and container ships has sharply increased year on year, shipbuilding prices have turned around and started to rise. Recently, those prices have been rising steeply.

Clarkson’s index for new building prices stood at 126 points from late last year to June 2013, but has been steadily rising in the latter half of this year. In July, the index hit 127.5 points, rose to 128.7 points in August, and then 129.5 points in September.

Industry experts predicted that new shipbuilding prices would continue an upward trend, given that Clarkson’s index is a little bit later index than actual, and the index of new shipbuilding prices steadily rose in recent months.

Amid a rise in shipbuilding prices, the total orders obtained by Korea’s big three shipbuilders have been increasing this year. 

Hyundai Heavy Industries (HHI) aims at winning US$23.8 billion in contracts for shipbuilding and marine engineering in 2013, including orders won by Hyundai Samho Heavy Industries. So far this year, HHI has obtained orders worth US$19.6billion, which amount to 82% of its target. In comparison, the target for 2012 was set at US$23.6 billion, but the company only earned US$14.8 billion from deals last year. 

Samsung Heavy Industries (SHI) is seeking to obtain US$13 billion in orders in 2013. So far, the company has won contracts valued at US$11.7 billion, reaching 90% of its target. Compared to US$9.6 billion orders last year, this year’s results show SHI’s remarkable growth. 

Daewoo Shipbuilding & Marine Engineering’s target in 2013 is US$13 billion. The shipbuilder has earned US$10.3 billion from orders so far, attaining 79% of its target.