Eworldship.com quoted a source from The Economic & Trade Commission of Jiangsu Province reveals in Jiangsu-Greece cooperation meeting that Jiangsu, China’s first province in shipbuilding industry, will have some shipbuilders forced out of the market in 2012, since new ship orders retreat sharply.
In H1, the province set the pace in producing ships and completed 5.62 million DWT of ships, taking up 35.4% of the total in China or 10.7% in the world. Meanwhile, the province signed new ship orders of 1.5 million DWT occupying 25.5% of that in China, with the possessed orders of 71.57 million DWT accounting for 37% of the total in China or 13.4% in the world.
As per report, the province’s new ship orders had dropped by 87%YoY in H1 amid the sleepy international market. It’s expected that the conflict between overcapacity and low demands in ship industry will emerge in the province and then some ship yards will be free from production due to few orders.
The commission predicts China’s shipbuilding will continue the boom in the second half of this year, and the province will finish 12 million DWT ships this year to take up 35% of China or over 10% in the world. According to the existed orders, the ship delivery will centralize in 2010 and 2011.