S.Korea: Yards Rally on Recovery Expectation

Source:Asiasis
2013.07.09
1121

The stock prices of Korean shipbuilders are shown to have risen on July 8, backed by an expectation from market recovery, notable price attractiveness and etc.  
On the same day, Kiwoom Securities of Korea mentioned over shipbuilding industry that commercial ship market is seen to resume gradually as recent newbuilding orders for containership are recovering.
Analyst Choi Won-Kyung said, “Cumulative orders for containership in the first six months of the year amounted to 90 units, exceeding 30 vessels recorded during the same period a year ago and 74 units posted in the full 2012,” and added, “This containership order spree is seen as Round two of Eco-ship order following PC order spree and it also represents commercial ship market recovery, which represents macro-economy is improving along with Eco-ship craze.”
For the past four months, the monthly average of newbuilding order recorded around 20 vessels, which is almost similar to a containership ordering boom which continued from July, 2010. Current ordering activity is highly expected to be maintained for a considerable period of time, according to the analyst.
Choi prospected, “When saying Hyundai Mipo Dockyard most benefited from PC order recovery, now it is Hanjin Heavy Industries & Construction which to benefit the most from containership market recovery since it secures the strongest advantage in containership segment among large five shipbuilders.”

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