Characteristics of economic operation of shipbuilding industry in the first half of 2014

Abstract In the first half of 2014, the pace of structural adjustment of the shipping market accelerated, and some shipowners were opportunistic in booking, and the volume of new ships in the world remained high. Chinese shipbuilding companies have achieved good operating results by taking advantage of bulk carriers. However, due to the weak growth of the world economy, it is difficult to change the excess capacity...
In the first half of 2014, the pace of structural adjustment of the shipping market accelerated, and some shipowners were opportunistic in booking, and the volume of new ships in the world remained high. Chinese shipbuilding companies have achieved good operating results by taking advantage of bulk carriers. However, due to the weak growth of the world economy, the difficulty of overcapacity, and the difficulties of shipping enterprises, the decline in the market turnover is obvious, the rising trend of new ship prices is hindered, and the market prospects are not optimistic. The Chinese shipbuilding industry still faces many difficulties and challenges.

Its economic operation has the following characteristics:

1. The State attaches great importance to the shipbuilding industry and supports policies to accelerate the implementation: implement the spirit of the document “Implementation Plan for Accelerating Structural Adjustment and Promoting Transformation and Upgrading of the Shipbuilding Industry (2013-2015) issued by the State Council. Relevant departments of the State strengthen investigation and research and promote policy implementation.

2. The ship price index was blocked and the steel prices stabilized and declined. In 2014, two important indicators affecting the profitability of shipbuilding companies – the ship price index and steel prices – showed different trends. The Clarkson new ship price index continued to rise for 12 consecutive months, and some new ship prices rose by 20% to 30% compared to last year's low, which improved the shipyard's profitability to some extent. At the same time, steel prices have remained at a low level since the beginning of the year, which is also conducive to the maintenance of profitability of shipping companies.

3. The completion of shipbuilding continued to decline, and the volume of new orders received increased year-on-year: in the first half of the year, the completion of shipbuilding in China continued to decline. At the same time, key key ship companies to undertake new ship orders increased by 78.2% year-on-year, and continued to maintain the number one position in the world.

4. The proportion of offshore orders has remained at the top, and the global development trend is not optimistic: in the first half of the year, China has undertaken 81 orders for various types of offshore engineering equipment, and the proportion of world market share has increased to 32%, ranking first in the world. However, after experiencing a boom of 3-4 years, the offshore engineering equipment market has entered an adjustment period in the past two years, which is not conducive to subsequent development.

5. Strengthening the drive of science and technology innovation, accelerating the pace of structural transformation and upgrading: In 2014, key enterprises and research units continued to strengthen market demand guidance, and achieved new breakthroughs in product structure adjustment, obtaining liquefied natural gas (LNG) vessels, super large oil tankers, and large scale Orders for a number of high-tech vessels such as container ships.

6. Resolving the overcapacity and achieving initial results: The shipbuilding industry conscientiously implemented the spirit of the State Council's "Guiding Opinions on Resolving the Severe Overcapacity of Production Capacity" and relied on relying on market regulation, resource adjustment and restructuring, enterprise transformation and transformation, and implementation of various government policies and measures. Partial excess capacity.

7. Financial institutions intensified efforts to support the development of the shipbuilding industry: Since the beginning of this year, various financial institutions have actively carried out financial services for the shipbuilding industry to accelerate structural adjustment and promote transformation and upgrading. Under the premise of preventing credit risks, the financial institutions have increased in a targeted manner. The support for key shipbuilding enterprises and the reasonable capital demand for the development of the shipbuilding industry have led to a significant increase in the loan balance of major commercial banks to the shipbuilding industry.

8. The ship's supporting orders showed a recovery growth: due to the increase in the number of construction vessels in the first half of the year, the orders for ship supporting products showed a recovery. Statistics show that from January to May, China's shipbuilding industry achieved a main business income of 41.2 billion yuan, a year-on-year increase of 13.6%.

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