November 22, 2008

Chinese SBQ demand pegged at 12 million tonnes for 2008

China Association of the National Shipbuilding Industry, based on statistics of 2007 ship steel consumption and order book held by the domestic shipyards, forecast that China's demand for ship steel will exceed 12 million tonnes in 2008 up by 27.5% YoY, while in 2009 the demand will increase by 33.3% to reach 16 million tonnes.

As reported, steel consumption in shipbuilding and repairing, ship subsection and marine engineering registered 9.41 million tonnes of which 75% was absorbed in shipbuilding.

In terms of steel variety, 5.91 million tonnes sheet and plate, 680,000 tonnes section and 520,000 tonnes other steel products were consumed by shipbuilding, totaling 7.11 million tonnes whereas in 2006 the figures were 4.64 million tonnes, 560,000 tonnes and 460,000 tonnes respectively with a total of 5.66 million tonnes.

In terms of region, Shanghai, Jiangsu and Liaoning used steels of 1.82 million tonnes, 1.75 million tonnes and 1.33 million tonnes respectively in shipbuilding in 2007. And the fourth largest consumer is Zhejiang with a consumption of 940,000 tonnes.

Currently, Chinese shipyards are holding order book of 158.89 million dead weight tonnes. It is expected shipbuilding completion will arrive at 25 million DWT in 2008 and 40 million DWT in 2009.