Chinese shipbuilders are seeing a surprise
surge in new orders despite the sluggish global demand.
State-owned AVIC International Ship
Development (China) Co Ltd received orders this month for four ro-pax ferries
from Stena RoRo, a subsidiary of the Swedish shipowner Stena AB.
It is the first time a Chinese shipyard has
won a contract to build ro-pax ferries for a Western owner.
The multi-billion-yuan deal came on April
5.
Three days later, the country’s No 1
private shipbuilder Yangzijiang Shipbuilding Holdings Ltd inked a $510 million
deal with ICBC Leasing, a shipowner under Industrial and Commercial Bank of
China Ltd, to build six large iron ore carriers.
Chinese shipbuilders received 7.42 million
dead weight tons of new orders in the first quarter of this year, representing
more than 80 percent of the new orders worldwide, according to industry
watchdog, the Ministry of Industry and Information Technology. The Chinese
builders only controlled less than a third of the global new orders a year ago.
The stabilizing global economy, recovering
commodity market and the advance of Baltic Dry Index helped boost ship demands.
Japan and South Korea are among the major competitors for Chinese shipyards.
Stronger international presence has sent up
shares of local shipyards.
Stocks of China State Shipbuilding Corp,
one of the biggest shipbuilders in China, closed at 25.58 yuan ($3.95) on
Friday, comparing with the week low of 24.45 yuan.
Shares of Zhejiang-based Asian Star Anchor
Chain Co Ltd climbed 0.68 percent to close at 10.36 yuan.
“Shipbuilders
delivered more ships in 2015 than a year earlier. Delivery number of
super-large carriers saw an obvious increase while demand for bulk cargo ships
went flat,” according to a report from Shanghai Brilliance Credit Rating and
Investors Service Co Ltd. “Chinese makers are heavily relaying on bulk cargo
ships.”
Industry researchers said the future for
small shipyards remain gloomy despite the recent order pickup.
The China Association of the National
Shipbuilding Industry said Chinese shipbuilding industry shrank in the first
two months in terms of tonnage delivered, under construction and new orders.
Zhang Feng, spokesman of the MIIT, said in
an earlier interview that further adjustments to the industrial structure are
needed in the shipbuilding sector.
“We are more
interested in quality than quantity in the industries that are suffering from
overcapacity,” said Zhang.
Zhao Zhongxiu, vice-president of the
University of International Business and Economics, said the increase in overseas
orders indicates overseas shipowners are preparing fleets for economic
recovery.
“Chinese
shipbuilders are offering a considerably lower price for orders, so for
shipowners, it is a good chance to use less capital purchasing a larger fleet,”
said Zhao.
