POSCO to Invest to Boost Steel Plate Output
Reuters said that POSCO Co. Ltd. said on Friday it would invest a total of $2b to boost output of steel plates for ships as the booming shipbuilding industry led to higher demand for the product. POSCO , the world's fourth-largest steel maker, said in a statement it would spend $1.96b to build a new domestic plant and related facility to produce steel plates. The plant, which will have a capacity of 2 million tonnes a year, will be completed by July 2010. With the new plant and planned upgrades to its existing facility, POSCO plans to raise its steel plate output to 7 million tonnes a year in 2011 from 3.8 million estimated for this year, the company said. The decision comes as surging demand for steel plates from shipbuilders and heavy industry companies keep prices firm.
Shipbuilders Struggle Over Steel
Shipbuilders and Japanese steelmakers are struggling to hammer out the differences on steel plate prices as the sellers insist on a 17 percent raise to $680 per metric ton. Korean shipbuilders including Hyundai Heavy Industries Co. are demanding a price cut from the current $580 to $480 per metric ton for the six months from October. "The talks (on price settlement) could go on until early October," said an official from the Korea Shipbuilders' Association. Steelmakers are pushing to lift prices in the face of rising material costs. Prices of iron ore, the key material for steel, continued to climb 17 percent this year, after jumping 71.5 percent in 2005 as a result of oligopoly trading by global iron ore miners and burgeoning demand from China.
Shipbuilders to Demand More Steel Plates
According to Korea Times, South Korean shipbuilders’ demand for steel plates is expected to continue to rise next year due to an increase in orders, an industry body said Monday. The Korea Shipbuilders’ Association forecast the industry’s demand for steel plates will reach 5.4 million tons next year, up 300,000 tons from this year. Industry sources predict the demand for steel plates is likely to amount to 6 million tons by 2008, a steady increase from 4.6 million tons in 2004. South Korea, which dominates the industry’s global market, has the world’s top three shipbuilders: Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co., and Samsung Heavy Industries.
Increased Demand for Steel Plates
South Korean shipbuilders’ demand for steel plates is expected to continue to rise next year due to an increase in orders, according to a Korea Times report. The industry’s demand for steel plates will reach 5.4 million tons next year, up 300,000 tons from this year. The demand for steel plates is likely to amount to 6 million tons by 2008, a steady increase from 4.6 million tons in 2004, says the report. South Korea is home to the world’s top three shipbuilders: Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co., and Samsung Heavy Industries. Source: The Korea Times
MOL Bulker is the First Built with Safer Hull
Mitsui O.S.K. Lines, Ltd. (MOL) announced the world’s first use of highly ductile steel plate NSafe-Hull, developed by Nippon Steel & Sumitomo Metal Corporation on a merchant vessel. The ship featuring this new safety-enhancing feature, a large-size bulk carrier, was launched on August 2. The NSafe-Hull’s highly ductile steel reportedly absorbs side impact to the hull three times more effectively than conventional steel plate, reducing the risk of cracks in the hull and significantly increasing the safety of the vessel, MOL said.
POSCO to Reset Steel Prices
POSCO is rearranging its steel prices in response to fluctuating international prices and domestic demand. On May 1, the steel producer will lift prices of mini-mill products, stainless steel and cut steel plate prices. In a statement, the company said prices for mini-mill hot-rolled coil will rise by $21 per ton to $501 in the domestic market due to falling inventory levels but prices for steel plate and steel plates for shipbuilding will fall by $31 per ton to $661 and $623, respectively. Its move is affected by recent price cuts by Japanese steel makers. For orders made from May 3, the prices of 300 series hot-rolled and cold-rolled products will each rise by $213 to $2,581 and $2,869 per ton, it said.
DW: Cyclical Steel Ride Continues
Since 1990, steel has been used in the construction of some of the world’s biggest thrill rides but in recent years it is the steel market itself that has seen all the dips and climbs of a high speed rollercoaster. As the global shipping industry went through a major build cycle between 2002-2007 demand for steel plate grew over 350%, placing a significant strain on existing mill capacity and driving prices and profitability higher and higher. However, the inevitable investment…
Hyundai Heavy, Baoshan Sign MoU
Hyundai Heavy Industries Co., Ltd. disclosed that it had signed a Memorandum of Understanding with Baoshan Iron & Steel Co., Ltd. to import wide and heavy plates for shipbuilding. Hyundai Heavy Industries plans to import 180,000 tons of steel plates from Baosteel yearly. Both declined to disclose the price of the deal to keep trade secret. Hyundai Heavy Industries said that the price was lower than that offered by Japanese steelmarkers and a South Korean report said that South Korea would gradually enlarge imports of China- made steel plates for shipbuilding. South Korean shipbuilders mainly bought wide and heavy plates from Japan besides the local supply. But the two sides have had different opinions on pricing since the second half of 2005.
Shipbuilders Demand Lower Steel Prices
South Korean shipbuilders are asking Japanese steelmakers to reduce their steel plate prices, Asia Times Online reported. The price of imported Japanese steel plates for shipbuilding is currently $680 per ton, far higher than the prices charged by South Korean and Chinese suppliers. Shipbuilders believe the price of Japanese products, which account for more than 30 of their annual needs, should be cut below $618 per ton. Chinese imports hover at about $500 per ton. Hyundai Heavy Industries will more than double imports from China to 500,000 tons this year from 200,000 tons a year earlier. The projected Chinese imports constitute 17% of the company's estimated annual demand of 3 million tons.
Hyundai Heavy to Import Chinese Steel Plates
According to reports, Hyundai Heavy Industries Co., Ltd., has signed a Memorandum of Understanding with Baoshan Iron & Steel Co., Ltd. to import wide and heavy plates for shipbuilding. Hyundai Heavy Industries plans to import 180,000 tons of steel plates from Baosteel yearly. Hyundai Heavy Industries said that the price was lower than that offered by Japanese steelmarkers and a South Korean report said that South Korea would gradually enlarge imports of China- made steel plates for shipbuilding. South Korean shipbuilders mainly bought wide and heavy plates from Japan besides the local supply. But the two sides have had different opinions on pricing since the second half of 2005.
ClassNK to Research on Brittle Crack Arrest Design
ClassNK announced that it will carry out a joint research project aimed at improving safety standards for ultra-large container ships. As container ships increase in size, so too does the thickness of the steel that is used. The preventative measures for brittle fracture become even more important with thicker steel especially in areas where higher stress occurs such as the upper deck and hatch side coaming of the cargo holds. In light of this and to improve the safety standards of large container vessels…
POSCO to Raise Steel Plate Prices
POSCO Co. Ltd., the world's fourth-largest steel maker, said it would raise the price of its steel plates for shipbuilding by 9.9 per cent, reflecting higher costs and strong demand, a Reuters report indicated. The South Korean steel maker will increase the price to $724.80 per tonne from $660, effective from October 25, the company said in a statement. Global prices of steel products, particularly for shipbuilding, have risen as shipbuilding yards have very strong order books in South Korea, China and Japan. Prices of raw materials such as iron ore, coal and scrap are also strong backed by brisk demand. POSCO, however, will maintain its prices of other key products, including hot-rolled and cold-rolled coil, in the fourth quarter. [Source: Reuters]
POSCO to Boost Production of Steel Plates
POSCO will increase production of ship steel plates by 30 percent from 3.6 million tons to 4.7 million tons over the next three years. The steelmaker said Wednesday it will invest in improving facilities of three ship steel production lines at its Pohang ironworks. Demand for ship steel is on the rise since the shipbuilding industry will need 6 million tons of steel this year, but steelmakers can only produce 4 million. A POSCO official said the company made the decision expecting the shipbuilding industry to remain brisk until 2015. Source: Forbes
Samsung Heavy to Double Steel Purchases From China
Samsung Heavy Industries Co. The company will rely on China next year for 21 percent of the 5 mm to 20 mm thick slabs used to make vessel hulls, compared with nine percent in 2006. Hyundai Heavy Industries Co., Daewoo Shipbuilding & Marine Engineering Co. and Samsung Heavy, are buying more steel to deliver 1,116 vessels on order, valued at a record $90.3 billion. Hyundai Heavy is also buying a $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. Samsung 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.
Offshore-Inland To Repair USS Alabama
Mobile, Ala.-based Offshore-Inland Marine & Oilfield Services has been subcontracted by Jordan Pile Driving Inc. to repair the hull of the battleship USS Alabama, one of the state of Alabama's most popular tourist attractions. Offshore-Inland Marine & Oilfield Services has been tasked with installing 18,000 sq. ft. of .5-in. inch thick steel plating on the battleship's hull at and below the waterline. Currently, Offshore-Inland is in the process of replacing the rusted sections of the hull to provide a solid base for the steel plating. The hull refurbishment, which is a part of overall improvements to the park, will be completed by late December 2003.
Damen Fits New SPS Feet to Wind Turbine Vessel
Damen ARNO Dunkerque, part of the Damen Shiprepair & Conversion Group, has given a new set of feet to what they are caling the world’s first purpose-built offshore wind turbine installation and maintenance vessel, the 2003-built MPI Resolution*.The yard has carried out upgrades on the feet or spudcans of all the jack-up vessel’s six legs to give them the additional strength they need to withstand the huge loads to which they are subjected when spudding on rocky seabeds. The operation…
Korean Shipbuilders Aim for $36b in Orders
Korea's top-three shipbuilders are eyeing $36b in sales this year, down from a record $37b last year. Korean shipbuilders secured almost half of the $100b in global orders last year offering a competitive balance of price and quality. But this year the shipyards are facing higher steel plate prices, while a strengthening Korean won against the dollar is eroding profits made from U.S. dollars. Korea's Hyundai Heavy Industries is the world's largest shipbuilder followed by Daewoo Shipbuilding and Samsung Heavy. Source: Arirang News
Hyundai Heavy to Buy Qinhuangdao Firm Stake
Reports indicate that Hyundai Heavy Industries Co. has reached a preliminary agreement to buy a stake in China’s Qinhuangdao Shouqin Metal Materials Co. Qinhuangdao Shouqin is a steelmaking unit jointly owned by China’s Shougang Concord International Enterprises Co. and Shougang Corp. Hyundai Heavy inked a letter of intent to buy shares in Qinhuangdao Shouqin to secure cheaper steel plates, the South Korean company said.
Celebrity Cruises Starts on Solstice
Celebrity Cruises has taken its first step toward physically launching Celebrity Solstice in Fall 2008. The line's President Dan Hanrahan ceremoniously pressed the start button for the plasma cutter at shipbuilder Meyer Werft in Papenburg, Germany, creating the ship's first steel plate. Accompanying Hanrahan were Celebrity's Executive Vice President Maritime & Newbuilding Harri Kulovaara, Celebrity Solstice Project Manager Jarmo Laakso, and Meyer Werft's Managing Director Bernard Meyer, Lambert Kruse and Project Manager Uwe Wulf.
Aker Philadelphia Shipyard Starts Construction of Aframax Tanker
Aker Philadelphia Shipyard, Inc. (APSI), the sole operating subsidiary of Aker Philadelphia Shipyard ASA (AKPS), began production activities today on the first of two Aframax tankers it will build for SeaRiver Maritime Inc. (SeaRiver), Exxon Mobil Corporation’s U.S. marine affiliate. When completed in 2014, the vessels will be 820 feet long and be capable of carrying 115,000 tons of crude oil. Since the shipbuilding contract was signed in September, 2011, engineering, planning, and procurement work have been underway. After a small ceremony in the shipyard’s Fabrication Shop, the cutting of the steel plates began. These plates will become part of the double hull of the tanker, which protects the cargo tanks.
Samsung Heavy to Double Steel Purchases From China
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…
Samsung Heavy Expects Fewer Ship Orders
Samsung Heavy Industries said that orders this year for its vessels and offshore platforms may fall as much as 21 percent as demand weakens from three consecutive years of records, Bloomberg reported. New contracts may drop to between $10 billion and $12 billion from an all- time high of $12.6 billion last year, reports indicated. Even the low end would be the second- highest level of new business in the company's history. Samsung Heavy and other yards in South Korea, home to the world's largest shipyards, took almost half of the orders last year in the world's $100 billion ship industry, as increased demand for fuel and global trade prompted shipowners to expand their fleets. Backlogs are at their highest ever, representing more than three years of work for the South Korean shipbuilders.
Diving Companies Track Pipes and Cables
WJ Castle PE & Associates Castle was recently subcontracted by Brayman Construction to perform an inspection and document the underwater conditions at a utility’s proposed site for a diffuser pipe extension. Using JW Fishers CT-1 cable tracker and PT-1 pipe tracker, Castle’s team of divers searched for a high voltage power cable and pipeline running through the area. Complicating the job was the excessive amount of debris littering the site, including steel plates, beams, and wire rope. Also close by were a seawall, constructed of steel-reinforced concrete and steel plates. Very high concentrations of ferrous metal in the area prevented the use a standard magnetometer, as it would be impossible to locate individual pieces.