Hyundai Heavy Leads Shipyard Decline on Prices

Tuesday, January 29, 2008
Hyundai Heavy Industries Co., led a decline in South Korean shipyard stocks in Seoul trading on concern prices for new vessels may drop. Hyundai Heavy fell 5.8 percent, the biggest decline in more than a week, to close at 319,500 won in Seoul. Hyundai Mipo Dockyard Co., a unit of Hyundai Heavy, fell 7.1 percent to 201,500 won. The shares also dropped after UBS AG said orders may slow this year from the record sales in 2007.

The price for second-hand bulk carriers was as much as 61 percent more than for new vessels last year because of increased demand for iron ore and coal from China and India. Shipyards in South Korea, the world's biggest shipbuilding nation, increased their order backlog last year, even with ship prices at records. The Baltic Dry Index, a benchmark for the price of shipping bulk commodities, has almost halved from an all-time high of 11,039 in November on concerns a U.S. economic recession may lead to a decline in global trade. Hyundai Heavy was the biggest decliner among 50 top companies traded on South Korea's Kospi index.

Shipyards in South Korea, the world's biggest shipbuilding nation, have orderbooks that stretch as far as into 2012. That is prompting shipbuilders to increase production to meet demand. ``The Korean shipbuilding sector could remain volatile in the near term, given weak new order expectations in 2008 from 2007,'' UBS analyst Son Yong Suk wrote in a note dated yesterday. He kept a ``buy'' rating for Hyundai Heavy shares. Daewoo Shipbuilding & Marine Engineering Co., the world's third-largest shipyard, dropped 1.2 percent to 34,100 won. Samsung Heavy Industries Co., the world's second-biggest, fell 0.5 percent to 28,350 won. STX Shipbuilding Co., the world's No. 5, shed 5.3 percent to 33,300 won. A capesize bulk carrier, the biggest of its type, cost about $97 million in December, 43 percent more than a year earlier, according to London-based Clarkson Plc, the world's biggest shipbroker. The price of a five-year vessel of the same size was 55 percent more expensive. Source: Bloomberg

Maritime Reporter August 2014 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Navy

Today in U.S. Naval History: September 23

Today in U.S. Naval History - September 23 1779 - Capt. John Paul Jones in Continental Navy frigate Bonhomme Richard captures HMS Serapis. 1931 - Lt. Alfred

MSC Award Two Time-Charter Contract Modifications

The US Department of Defense informs that Offshore Service Vessels, Inc., and Sealift, Inc., have each been awarded time charter option extensions by the US Navy's

Swiftships Shipbuilding Awarded Iraqi Navy Support Contract

The US Department of Defense informs that Swiftships Shipbuilding, L.L.C., Morgan City, Louisiana, is being awarded an $18,000,000 not-to-exceed contract for the

Finance

Barge Operator Fined for Releasing Dangerous Gas

The operator of a Portsmouth-based barge has today been made to pay almost £111,000 in fines and costs after pleading guilty to a breach of maritime legislation.

Charterers Remain Optimistic Despite Small Downturn

Overall confidence levels in the shipping industry fell slightly during the three months to August 2014, according to the latest Shipping Confidence Survey from

Insights: New York Canal Director Brian Stratton

Brian U. Stratton was appointed Director of the New York State Canal Corporation in April 2011, to oversee the operation and development of New York’s 524-mile Canal System,

 
 
Maritime Careers / Shipboard Positions Maritime Security Maritime Standards Naval Architecture Pipelines Pod Propulsion Port Authority Ship Repair 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: 0.1386 sec (7 req/sec)