Yard overkill looms for China

Beijing: The shipbuilding capacities planned by all local governments have far exceeded what the central government desires and a shipbuilding overcapacity is lurking, warns Zhang Guangxin, president of the China Association of the National Shipbuilding Industry (CANSI), according to state media Xinhua.

In view of the fact that the country's shipbuilding projects have mushroomed and capacity is expanding fast, government authorities including the National Development and Reform Commission and the Ministry of Commerce are working on policies to tame capacity expansions and the flooding-in of foreign capital

Statistics show that the shipbuilding orders China received in the first quarter of 2007 made up 42 percent of the world's total in the period. In the three months, the country built 2.87 million DWT of ships, got 12.43 million DWT of new orders, and held 79.86 million DWT of orders, respectively up 19 percent, 67 percent and 86 percent year on year. The three volumes also made up 18 percent, 42 percent and 24 percent of the corresponding world's total.

Zhang of CANSI says it is imperative for the country to consider possible anti-dumping accusations in the future and avoid receiving underpriced shipbuilding orders. [20/06/07]

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