Shipbuilders Rally as Hope Builds
Shipbuilder stocks in Korea rallied today, apparently fueled on hopes the shipbuilding industry had hit bottom in the second quarter and that demand for new vessels may revive as world economies stabilize, according to a Reuters report. Reuters reported that Daewoo Securities said in a note on Thursday that a sectoral turnaround was expected in the third quarter, adding that companies with strong offshore plants were recommended. A precipitous fall in steel pricing has helped shipbuilder's profitability. Hyundai Heavy Industries, the world's largest shipbuilder, rose 3.85 percent to 189,000 won and Samsung Heavy Industries advanced 5.89 percent to 27…
South Korean Yards Expected To Nab 75 Percent of LNG Orders
South Korean shipyards are expected to win about 75 percent of an estimated 48 orders for liquefied natural gas (LNG) carriers this year, industry officials said on Wednesday. "There are virtually no rivals to compete with Korean shipbuilders in making LNG carriers in terms of price and quality," said Yoo Jae-won, a spokesman for the Korea Shipbuilders' Association. Surging demand for environmentally friendly LNG was expected to raise the number of LNG carrier orders to around 48 this year from only 14 last year. "Korean shipbuilders are poised and look likely to grab most of the orders," Yoo said. Daewoo Shipbuilding and Marine Engineering, the world's second-ranked yard, said its LNG orders totalled 10 ships worth $1.7 billion so far this year, with options for 12 more.
