Shipbuilding warms up in Hechuan on steel price drop

It is reported that, Chongqin eyes orders increasing consumedly due to steel price drop, shipyards in Hechuan. Till the end of February, there were 18 bulk carriers, being built in 4 local boatyards, who are Huahai, Dongdu, Lunsi and Yunmeng, located in Jialingjiang River. Mr Guo Dafu manager of Lunsi Shipyard introduced that each new ship is CNY 600,000 and the production cost is cut by CNY 100,000 per each, only because of recent price plunge.
Steel price dived to about CNY 3000 per tonne in 2nd half of last year from about CNY 6000 per tonne in 2007 down by 50%.
The new ship owners said, as Chongqing mainly invests in housing, speedways and railways to extend demands, these efforts will effectively spur transport businesses in rivers. Meanwhile, rivers in Hechuan are abundant in sand with yearly outputs over 3 million tonnes. Thus, they are confident of water transport in Jialingjiang. It's said that Chongqing is to pour CNY 300 billion to stimulate demands.
As learned, ship owners will throw CNY 15 million into the construction of new ships. And the 18 new ships are expected to be finished in the second half of this year. Additionally, ship industry in Hechuan is facing the most flourished period after 2005.