Jiangsu's shipbuilding exports surge 120pc in May

The value of exported ships built in China's Jiangsu province increased 120 per cent in May to US$1.4 billion, a new monthly record since 2009, Xinhua reported. From January to May, Jiangsu's ship export value amounted to $5.5 billion , up 62.7 per cent year on year. Processed ship exports valued $5.4 billion, up 66.9 per cent, accounting for 99.2 per cent of the total of ship export value of the province.
These ships mainly exported to the European Union, Latin America, Hong Kong and Africa. During the first five months, ships exported to the EU valued $1.6 billion, up 17.9 per cent, representing 28.8 per cent of Jiangsu's ship export value total. Those exported to Latin America rocketed 630 per cent in value to $990 million. Those exported to Hong Kong valued $960 million, up 57.9 per cent. Value of ships exported to Africa soared 240 per cent to $700 million.
In the five-month period, containerships exported from Jiangsu rose 26.2 per cent in value to $810 million, taking up 14.8 per cent of the province's total ship export value. Bulk carrier export value surged 210 per cent to $3.1 billion, taking up 57.1 per cent of the total. Liquid carrier export dropped 1.9 per cent in value to $1.1 billion.
According to an unnamed Nanjing customs official, the rapid growth of Jiangsu's ship export was because the shipbuilding industry is on the way of recovery. Statistics from shipping industry researcher Clarksons, the world's new orders totalled to 114 vessels in April, with a compensated gross tonnage (CGT) of 2.1 million tonnes, up 22.1 per cent over March. China had 45 new orders with a CGT of 788,000 tonnes, second to Korea.
In addition, the rebound in the global shipping market also contributed to the growth of Jiangsu's ship export. The Baltic Dry Index has been hiking from 2,991 points since early April and hit a peak at 4,209 points in late May, up 40.7 per cent.
The coming rise of steel prices and the new orders prices hitting bottom were also reasons given for the growth. Shipowners hope to order new ships before the ship and steel prices increase.