China shipbuilding orders slump 70%

Chinese shipbuilders' orders during the January-September period plunged 70% from the same period last year to 16.92 million deadweight tons, the Chinese Association of National Shipbuilding Industry said in a report. The report said Chinese shipbuilders' combined net profit for the January-August period fell 6% from a year earlier to CNY20.63 billion.
The association said it expects China's shipbuilders to secure around 20 million DWT worth of new orders this year and to have a combined net profit of more than CNY30 billion.
China's shipbuilders secured 58.18 million DWT of orders in 2008, a drop of 40.9% from 2007.
The association said it expects the outlook for the shipbuilding industry to remain lackluster over the next one to two years.
"Judging from the recent prices of new vessels, it is going to be a buyer's market, with the possibility of new vessel prices selling below the average costs of operating a route," the report said.
The association's data showed the Chinese shipbuilding industry accounted for 70% of new orders globally during the January-September period, as well as 31% of the world's vessel output during the nine months.