Shipbuilders in Zhejiang complain on fast price rise

It is reported that Shipbuilders in Zhejiang are complaining that the fast price rises make them suffer profit declines weighing on the provincial ship industry. According to international customs, shipbuilder should bear this cost rise which takes a big bite of their profits. Steel price rise not only push up purchasing cost of ship plate, but also of the equipments which are manufactured with steels. Among all the industries, shipbuilding consumes a large part of steel products.
As per report, the ship yards in Zhoushan, Taizhou and Wenzhou always try to escape from the hit by steel price surge. Some of them bought in steel products before this round of rise and some fixed purchasing prices with steelmakers to abate the risk. In addition, some companies in hardware and small size house hold appliance industries frequently get products in but with tiny volume for each. And, there still are several users who join in steel futures market aiming to ease the cost rise by hedging.
Mr Bai Rui GM of steel department of Mysteel noted downstream steel users still can afford the cost increases, but some exporters, who lacks of orders will suffer torture, if steel prices kept going up.