China’s Shipbuilding Slump “Pretty Depressing” [NotSoBreaking] - MarketTicker Forums


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User Info	China’s Shipbuilding Slump “Pretty Depressing” in forum [NotSoBreaking]
Asimov Posts: 104662 Incept: 2007-08-26 East Tennessee Eastern Time	http://gcaptain.com/china-shipbuilding-s.... Quote: (Bloomberg) — China has too many ships. The glut has pushed new vessel prices to eight-year lows and caused a 49 percent plunge in first-half orders at the nation’s more than 1,500 shipbuilders. It’s also tipped smaller yards into bankruptcy and hit earnings at larger players. “It is a pretty depressing environment,” said Ajay Mirchandani, a Singapore-based JPMorgan Chase & Co. analyst. “You just have too many yards and too few orders, which is hurting pricing and profitability.” Orders have tumbled as a global excess of commodity, oil and container ships has damped cargo rates and deterred owners from ordering more vessels. China Rongsheng Heavy Industries Group Holdings Ltd., the nation’s biggest shipbuilder outside state control, hasn’t announced any vessel contracts this year, while Yangzijiang Shipbuilding Holdings Ltd.’s backlog shrank 27 percent in the year ended March because of the slowdown. “It might take two to three years before the situation improves,” said Zhang Yao, Yangzijiang’s investor relations spokesman. “There’s definitely an adverse impact on our profits.” Guangzhou Shipyard International Co.’s first-half profit probably fell more than 50 percent, partly because the price of under-construction vessels “dropped sharply” from a year earlier, the company said this week. The shipbuilder has fallen 55 percent in the past year in Hong Kong trading, while Rongsheng Heavy has plunged 74 percent. In Singapore, Yangzijiang has slumped 31 percent and Cosco Corp. Singapore Ltd. has tumbled 47 percent. ... ---------- It's justifiably immoral to deal morally with an immoral entity. If you trade based on what other people say, you will lose money. Especially what I say. I won't be held responsible. Festina lente. Last modified: 2012-07-27 05:00:15 by asimov 2012-07-27 04:59:39 Permalink
Zarathustra Posts: 6027 Incept: 2009-04-29 Funkytown	---------- "And in knowing that you know nothing, that makes you the smartest of all." - Socrates 2012-07-27 06:31:17 Permalink
Rjazz117 Posts: 17965 Incept: 2007-09-11	Quote: “It might take two to three years before the situation improves,”... Translation: It might take two to three years, before we lose enough of our existing surface fleet, after having****ed off enough of our neighbors that they start shooting at them. ---------- “To compel a man to subsidize with his taxes the propagation of ideas which he disbelieves and abhors is sinful and tyrannical.”* Thomas Jefferson 2012-07-27 07:10:06 Permalink