Pulse News reported that South Korea’s shipbuilders Korea Shipbuilding & Offshore Engineering, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries are demanding steelmakers to cut the price of steel plates as raw material costs have fallen this month. The shipbuilding and steel industries negotiate the price of steel plates every six months and apply the agreed price retroactively on their financials. The shipbuilding industry argues that price adjustment is inevitable as steel plate prices increased in the last three half-year period since 2021.In the first half of this year, steel plate prices doubled compared to the same period last year. South Korea’s shipbuilders had agreed in August for KRW 1.15 million (USD 980) per tonne for second half of 2022 as compared to earlier price of KRW 700,000 (USD 600). However, the recent weak Korean won offset any impact from a decline in iron ore pricesSteel plates that are over 6mm in thick, which are used to the make hulls of ships, account for about 20 percent of shipbuilding costs.World’s top shipbuilders in South Korean have fallen far behind their Chinese rivals in terms of new global orders in November to rank second in the world. According to data provided by global market researcher Clarkson Research Service, South Korean shipbuilders won a combined 1.08 million compensated gross tons in new orders as compared to 1.56 million CGTs by Chinese shipyards. In the January-November period, new shipbuilding orders around the globe sank 23% YoY to 39.11 million CGTs, with China taking the top spot with 18.48 million CGTs or 47% of the world total & South Korea obtaining 15.75 million CGTs or 42%
Pulse News reported that South Korea’s shipbuilders Korea Shipbuilding & Offshore Engineering, Daewoo Shipbuilding & Marine Engineering and Samsung Heavy Industries are demanding steelmakers to cut the price of steel plates as raw material costs have fallen this month. The shipbuilding and steel industries negotiate the price of steel plates every six months and apply the agreed price retroactively on their financials. The shipbuilding industry argues that price adjustment is inevitable as steel plate prices increased in the last three half-year period since 2021.In the first half of this year, steel plate prices doubled compared to the same period last year. South Korea’s shipbuilders had agreed in August for KRW 1.15 million (USD 980) per tonne for second half of 2022 as compared to earlier price of KRW 700,000 (USD 600). However, the recent weak Korean won offset any impact from a decline in iron ore pricesSteel plates that are over 6mm in thick, which are used to the make hulls of ships, account for about 20 percent of shipbuilding costs.World’s top shipbuilders in South Korean have fallen far behind their Chinese rivals in terms of new global orders in November to rank second in the world. According to data provided by global market researcher Clarkson Research Service, South Korean shipbuilders won a combined 1.08 million compensated gross tons in new orders as compared to 1.56 million CGTs by Chinese shipyards. In the January-November period, new shipbuilding orders around the globe sank 23% YoY to 39.11 million CGTs, with China taking the top spot with 18.48 million CGTs or 47% of the world total & South Korea obtaining 15.75 million CGTs or 42%
