Despite a slump in the newbuilding market South Korean shipbuilders do not expect newbuilding prices to fall further due to the cost of materials, such as thick steel plates.
A number of analysts including Clarkson Research Services’ Martin Stopford have forecast that newbuilding prices could fall by as much as 10% this year as yards get increasingly desperate for new orders and accept prices below breakeven level.
However, South Korean shipbuilders hold a different view as they shift much of their new order attention to the offshore sector.
Especially, Big3 shipbuilders Hyundai, Samsung and Daewoo are targeting nearly 70% of orders this year in the offshore arena, such as Central Processing Facility, FPSO and drillship.
Published : April 6, 2012