Samsung Heavy to Double Steel Purchases From China

Friday, December 29, 2006
Samsung Heavy Industries Co. will reportedly more than double purchases of steel plate from China next year because it can't get enough from suppliers in South Korea and Japan, according to a Bloomberg report The company will rely on China next year for 21 percent of the 5 mm to 20 mm thick slabs used to make vessel hulls, compared with nine percent in 2006.

Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy, are buying more steel to deliver 1,116 vessels on order, valued at a record $90.3 billion. Hyundai Heavy is also buying a $53 million stake in a Chinese steelmaker to guarantee supplies at a lower cost and depend less on its main sources in South Korea and Japan. Samsung has a preliminary agreement to buy 150,000 tons of the slabs from Shougang Group of China, bringing next year's purchases from the country to 250,000 tons.

Steelmakers have roughly doubled the price of steel plate since 2003 to about $600 a ton because of increased demand from shipyards and higher costs of iron ore used to make steel products. Posco, South Korea's largest steel company, and other Asian makers of the material are investing to increase output. Steel, Metal Hyundai Heavy will reportedly buy about 700,000 tons of steel plate from China in 2007, 22 percent of its full-year requirement of 3.2 million tons, compared with about 16 percent this year, the company said in September. It also agreed to buy 20 percent of China's Qinguangdao Shouqin Metal Materials Co. Seoul-based Daewoo Shipbuilding, the world's No. 2 shipbuilder, plans to get about 5 percent of its annual use from China compared with 3 percent this year. (Source: Bloomberg)

Maritime Reporter March 2015 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Shipbuilding

SeaZip Takes Delivery of Damen Crew Suppliers

On 28 March, SeaZip Offshore Service named two new Damen Fast Crew Suppliers (FCS) 2610 at Damen Shipyards Gorinchem.   The two vessels, named SeaZip 3 and SeaZip 4,

Damen Delivers Stan Patrol Vessel to RBDF

The Royal Bahamas Defence Force (RBDF) has taken delivery of the fourth and final Stan Patrol 4207, named HMBS Rolly Gray. The four Stan Patrol 4207s form part of the six-year Sandy Bottom project.

Seaspan Acquires 7th SAVER Boxship

Seaspan Corporation announced today that it accepted delivery of a 10000 TEU containership, the MOL Beacon. The new containership, which was constructed at Jiangsu Yangzi Xinfu Shipbuilding Co.

 
 
Maritime Security Maritime Standards Naval Architecture Navigation Pod Propulsion Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | terms and conditions | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1180 sec (8 req/sec)