Marine Link
Wednesday, September 28, 2016

Samsung Heavy to Double Steel Purchases From China

December 28, 2006

According to Bloomberg Samsung Heavy Industries Co. will more than double purchases of steel plate from China next year because it can't get enough from suppliers in South Korea and Japan. The company will rely on China next year for 21 percent of the 5 millimeter- (0.12 inch) to 20-millimeter-thick slabs used to make vessel hulls, compared with 9 percent in 2006, Seoul- based Samsung Heavy said today in an e-mail. Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy, the world's top-three yards, are buying more steel to deliver 1,116 vessels on order, valued at a record $90.3 billion. Hyundai Heavy is also buying a 49 billion-won ($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. The company 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 (PKX), South Korea's largest steel company, and other Asian makers of the material are investing to increase output. Source: Bloomberg


Maritime Reporter Magazine Cover Sep 2016 - Maritime & Ship Security

Maritime Reporter and Engineering News’ first edition was published in New York City in 1883 and became our flagship publication in 1939. It is the world’s largest audited circulation magazine serving the global maritime industry, delivering more insightful editorial and news to more industry decision makers than any other source.

Subscribe
Maritime Reporter E-News subscription

Maritime Reporter E-News is the subsea industry's largest circulation and most authoritative ENews Service, delivered to your Email three times per week

Subscribe for Maritime Reporter E-News