China yards see new deals and order backlog deflate 30% in first five months

China’s shipyards have seen their newbuilding deals and order backlog deflate by around 30% in the first five months compared to the same period of last year, according to figures from China Association of the National Shipbuilding Industry (Cansi).

From January to May 2017, Chinese shipbuilders landed 9.86m dwt in newbuilding tonnage, representing a 31.5% decline compared to the previous corresponding period, Cansi data showed.

The orderbook backlog at Chinese yards up until 31 May 2017 stood at 85.15m dwt, down 30.7% year-on-year and down 14.5% compared to end-2016.

In completed newbuild tonnage, the shipyards built a total of 22.93m dwt in tonnage capacity over the first five months, a spike of 78.8% year-on-year.

China’s 53 leading shipbuilders took the lion’s share of the shipbuilding market with new orders recorded at 8.74m dwt in the first five months, a decrease of 37% compared to the same period of 2016, according to Cansi.

The 53 leading yards monitored by Cansi completed newbuild tonnage of 19.57m dwt, up 63.5%, and sat on an order backlog of 80.61m dwt, down 31.6%.

Cansi further monitors 80 main shipyards showing that their combined completed newbuildings to be valued at RMB149bn ($22.26bn), a drop of 7.7% year-on-year. Among the total value, shipbuilding accounted for RMB67bn, equipment amounted to RMB9bn and ship repairs took up RMB4.2bn.

The 80 main shipyards generated a total revenue of RMB109.6bn from January to May this year, a fall of 7.2% while total profit also slipped by 6.3% to RMB1.5bn.

Posted 19 June 2017

© Copyright 2019 Seatrade (UBM (UK) Ltd). Replication or redistribution in whole or in part is expressly prohibited without the prior written consent of Seatrade.

Lee Hong Liang

Asia Correspondent

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