Chinese shipbuilding industry having been stagnant recently is prospected to have not so bright future.
Zhou An, member of Chinese People’s Party Consultative Congress, has told through an interview with a local newspaper that there is little possibility to see a great improvement for the next two to three years, pointing out a recession that Chinese shipbuilding industry has been going through now.
According to data from China Association of National Ship Industry (CANSI), newbuilding deliveries of Chinese shipbuilding industry in 2012 were a total of 60.21mDWT with a 21.4% decrease compared to same time period last year while newbuilding contracts were reported to be a combined of 20.41mDWT, down by 43.6% against the same period last year, with an orderbook standing at 106.95mDWT as of the end of last December, down by 28.7% from the previous year.
Moreover, CANSI prospected that major economic indicators in Chinese shipbuilding industry are likely to be on a downturn in 2013 due to a decrease in orderbook and an increase in production cost. Furthermore, vessels of a combined of 55mDWT are to be constructed this year with a slight increase in new contracts, yet orderbook is anticipated to be lower than 100mDWT.
Zhou An pointed out the reason behind the slump as a protracted economic slump in Europe and America and some European countries having a debt crisis. However, seen from another perspective, it is anticipated to see a situation improving little by little since there are still demands in the market.