The shipbuilding industry in China falters

The new vessel orders in China sank in the first seven months of this year, highlighting the underlying weak demand chiefly caused by the epidemic. The national shipbuilders secured new vessel orders proportionate to around 14 million deadweight tonnes (dwt) during January-July this year, fell by 4.8% year-year basis, according to China Association of the National Shipbuilding Industry (CANSI).

Around 90.2% (~12.6 million dwt) of the new orders were of exports, which also registered negative growth- a drop of 7.7% year-on-year. The shipbuilding output was nearly 20 million dwt, a decline of 9.4% year-on-year as of year to date (YTD) by July 2020.

Moreover, South Korea superseded China by commanding high order book in July 2020; this turnaround owed to high LNG orders Korean shipyard received.

Commodity Inside understands that Chinese and Korean governments are trying to support their shipbuilding industries. However, China also benefits from its substantial domestic demand for ships.

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