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South Korea: Shipbuilding compensating for plates demand loss from other segments

The rise in Korea’s demand from the shipbuilding industry this year is compensating for the demand loss from other plate-consuming industries. This trend is expecte...

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15 Nov 2021, 16:37 IST
South Korea: Shipbuilding compensating for plates demand loss from other segments

The rise in Korea's demand from the shipbuilding industry this year is compensating for the demand loss from other plate-consuming industries. This trend is expected to be seen in the entire CY'21, as per a SteelDaily report.

Last year, plate manufacturers expected demand to be less than 4 million tonnes (mn t), but in reality, things were more bullish with shipbuilding orders on a rise since end-Nov'20. Also, the annual order targets from the industry have already been exceeded by Oct'21 as container orders rose on the back of disrupted logistics.

Heavy plate production and sales volumes are expected to remain in tandem with those in CY'20 although demand from non-shipbuilding industries will be slow, it is understood.

Performance of shipbuilders

Performance of shipbuilders till October last year accounted for 39% of global orders at 15.79 million compensated gross tonnage (CGT).

Korea Shipbuilding and Marine Engineering (KOMIPO) achieved $2.18 billion in order receipts this year, 146% of its target at the beginning of CY'21.

The order backlog as of end-Oct'21, was found to be 28.82 million CGT, the largest since Mar'16's figure of 29.38 million CGT.

Imports

The structural shift, owing to the restructuring of heavy plate facilities in Japan and production curbs in China, is expected to reduce reliance on imports.

 

15 Nov 2021, 16:37 IST

 

 

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