S. Korean shipbuilders on path to recovery: data

The local shipbuilding industry, which has been mired in a deep recession over the past few years, may recover down the road with demand for new ships on the rise, data showed Wednesday.
Orders won by South Korean shipbuilders reached a combined US$22.99 billion in the first seven months of this year, up 32.4 percent from a year earlier, according to the data compiled by market researcher Clarkson.
Also, local shipbuilders clinched a combined 4.98 million compensated gross tons (CGTs) worth of orders in the January-July period, surging 50 percent from a year earlier.
In terms of the number of vessels, South Korean shipbuilders clinched orders to build 216 ships during the cited period, compared with 63 ships a year earlier, the data showed.
According to industry sources, Clarkson's index measuring new building prices stood at 128 points in July this year, inching up from 127 points in June.
New shipbuilding prices have been on the decline for years, as demand for new ships dropped amid the global economic downturn and oversupply.
Since November last year, the U.K.-based shipping research center's index has remained static, hovering around 125 points.
"Increased orders for new ships, along with rising ship prices, may herald a pick-up in the sector's recovery," said an official at Daewoo Shipbuilding.
Source: Yonhap