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Yonhap reported that South Korean shipbuilders are forecast to report sluggish earnings in the second quarter of the year due to a sharp rise in prices of steel plates despite brisk orders. The cost of steel plates takes up about 20% of the overall expense of the ship construction. A hike in prices of raw materials, including steel plates, will eat into leading shipbuilders' profits in the second quarter.

 

South Korea's leading steelmaker POSCO has raised the prices of steel plates for ships to KWR 1.15 million per tonne (USD 1,000), up nearly two times from a year ago.

 

The leading local shipbuilders Korea Shipbuilding & Offshore Engineering Co (Hyundai Heavy Industries Co, Hyundai Samho Heavy Industries Co and Hyundai Mipo Dockyard Co), Daewoo Shipbuilding & Marine Engineering Co and Samsung Heavy Industries Co have bagged better-than-expected new orders in the January-June period.

 

source：SteelGuru Business News