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

Navy

As First Victims Mourned, Italian Navy Searches On

Italy held a funeral service on Tuesday for 13 migrants who died in the worst shipwreck in the Mediterranean in recent history, while the navy continued its search for other victims of the disaster.

Migrant Sailboat Sinks in Aegean, 17 Missing

A sailboat carrying migrants sank in in the Aegean sea between Turkey and Greece on Tuesday and at least 17 people were missing, Greek authorities said. Greece's

Russian Submarines in Alaska?

Russia is expected to finish the construction of a submarine base on the Kamchatka Peninsula by the end of October.   "Upgrades to the Russian Navy’s ballistic

Finance

Greece Port Operations Update

An update on Greece’s port operations and local conditions was issued today by maritime services provider Inchcape Shipping Services (ISS).   According to ISS,

Container Shipping Lucky to Break Even in 2015

A toxic mixture of overcapacity, weak demand and aggressive commercial pricing is threatening liner shipping industry profitability for the rest of 2015, according

Dry Bulk Market Crisis: Opportunity or Threat?

The shipping industry is experiencing the biggest dry bulk market recession since the 1980s, as uncertain global economic outlook and increased imbalance between

 
 
Maritime Standards Navigation Pipelines Port Authority Ship Electronics Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | 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: 0.1181 sec (8 req/sec)