China Shipping Eyeing H2 Gains

BEIJING, May 18 -- It is reported that deadlock exists in China's new ship orders deduced by April statistics which show China gained new ship orders of 0.2 million deadweight tonnes in the month down by 95%YoY.
&nbsp;&nbsp;&nbsp; A senior official from Yangfan Group guessed that "These contracts in China might come into agreement before April and just be confirmed in the month."
&nbsp;&nbsp;&nbsp; A researcher noted that "Domestic situation is better than Korea and Japan, there were no new orders in the latter two countries.”
&nbsp;&nbsp;&nbsp; A senior official from China State Shipbuilding Corp complained that "Most large ship yards gained nothing in the month."
&nbsp;&nbsp;&nbsp; An official in one of state-owned shipbuilders in Jiangsu noted that there are still some demands in China however, centralizing in small sized special ships like dredges and engineering ships for building Xiameng Airport.
&nbsp;&nbsp;&nbsp; The official from Yangfan Group said "Prices for all vessels jumps, we can't accept orders at recent prices."
&nbsp;&nbsp;&nbsp; In May, new ship price index of bulk carriers, oil tankers and container ships respectively drops by 28%YoY, 18%YoY, and 37% YoY. The main outlook towards this year's movement says new orders aren't likely to increase largely this year which is decided by the shipping market.
&nbsp;&nbsp;&nbsp; A researcher in shipping market said though BDI rallied to 2214 in April from the lowest level of 660, shipping companies remain in deficits. They are unable to afford new ships since they didn't make money and felt difficulty in financing.
&nbsp;&nbsp;&nbsp; Luo Xiong an analyst of China Merchants Securities told to CBN that the rally is a short term adjustment in shipping market, which affects less in ship industry.
&nbsp;&nbsp;&nbsp; (Source: First Financial News of CBN)
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