Steel Prices, Repair Costs Soar

Friday, May 07, 2004
Latest quotes from China are showing radically higher steel repair figures, according to sources. From about 70-80 cents per kg a year ago, steel repairs are now being quoted at $1.30-1.50 per kg by Chinese repairers. “This reflects the fact that they don’t really want the work”, said one source. “They’re full!”. Nevertheless these new price levels are still well below Black Sea rates of close to $2 per kg and south European prices of well over $3 per kg. Despite a period of unprecedented profitability in most key markets, owners’ approach to ship repair has not changed, repair sources are saying. First, owners sought to postpone repairs as long as possible to make the most of soaring spot and short-term rates. After bulk markets had improved so quickly, owners were doing their best to obtain class extensions wherever possible. And class societies were reasonably flexible, say sources, although repair men are not prepared to go “on the record” to say so. Now, owners’ attention has switched to focusing on possible Far Eastern voyages to reposition ships for cheaper repairs in the East, rather than pay a premium in the Mediterranean. European repair yards are clearly frustrated by this – some owners have been making day rates of four, five or six times recent levels and could easily afford to support repair yards in Europe battling with a strong euro.

For more details visit www.shipbuilding.com

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

Ship Repair & Conversion

Conquest Installs 850t Crane on Allseas Solitaire

Conquest Offshore was contracted by Allseas to remove a 300-ton crane and transport and install a 850-ton Huisman crane on board of one of the largest pipe-lay vessels in the world, Allseas Solitaire.

Canadian Navy Frigate Refit Program Completed

Seaspan joined Harjit S. Sajjan, Canada’s Minister of National Defense, at an official ceremony today to celebrate the completion of the Halifax-Class Modernization/Frigate

How France Sank Japan's Sub Dream

Ousting of Japan ally PM Abbott opened door to rivals; Tokyo slow to respond to new competitive process. In 2014, a blossoming friendship between Australian

Finance

MARAD: $5 Mln Available for Marine Highway Projects

The Maritime Administration (MARAD) has announced the availability of $5 million in Federal funding to expand marine highway service by creating new or expanding

Baltic Index Down on Lower Capesize, Panamax Rates

The Baltic Exchange's main sea freight index, tracking rates for ships carrying dry bulk commodities, slipped on Friday, as demand for capesize and panamax vessels fell.

Oil Rally is Not Just About Hedge Funds: Kemp

Oil prices are becoming dangerously overheated as speculators anticipate a rebalancing of supply and demand that has barely started, according to many oil analysts.

 
 
Maritime Careers / Shipboard Positions Maritime Standards Navigation Pod Propulsion Port Authority 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: 0.0584 sec (17 req/sec)