China's newbuilding delivery is expected to slightly increase in the second quarter, while its major shipbuilding indexes for Q1 all dropped year-on-year.
According to China Association of the National Shipbuilding Industry (CANSI), Chinese shipyards' newbuilding contract and delivery for the first three months of 2012 stood at 5.59m dwt and 11.21m dwt, down by 49.7% and 22.5% compared to the same period last year. Its orderbook, at the end of March, decreased by 25.3% to 141.94m dwt year-on-year.
As IMO adopted Performance Standards for Protective Coatings (PSPC), to be enforced from July 1, newbuilding delivery seems to reach its peak in May and June. China's delivery would increase in Q2, accordingly.
As a number of newbuilding contracts have been disclosed in recent two weeks, market is likely to get better, in spite of low price.
China Newbuilding Price Index (CNPI) recently increased by 0.7% to 899p, while dry bulk vessel price index CNDPI, tanker index CNTPI and container index CNCPI declined by 0.7%, 0.5% and 0.9% to 874p, 942p and 949p, respectively.