South Korean shipbuilders are on a solid rebound, demonstrating the most packed order book in April for the second time this year, according to U.K-based industry monitor Clarkson Research Services Ltd.

Korean shipyards secured 12 vessel-building orders totaling 340,000 compensated gross tons (CGTs) last month, outpacing Chinese peers with 260,000 CGTs or 13 ships for the second time after January. Japanese shipbuilders won no order during the same period.

Daewoo Shipbuilding & Marine Engineering Co. drew an order to build three very large crude carriers (VLCCs), Hyundai Samho Heavy Industries Co. three VLCCs, Hyundai Mipo Dockyard Co. two ethylene/liquefied petroleum gas (LPG) carriers, STX Offshore & Shipbuilding Co. three oil and chemical tankers and Dae Sun Shipbuilding & Engineering Co. one oil and chemical tanker.

Buoyed by new order flow after long drought, all of Korea’s top three shipbuilders recorded operating profits in the first quarter ended March, for the first time in five years, according to the industry source.

Industry experts now expect Korean shipbuilders that had to plead for creditors’ relief last year can restore their reputation as the world’s top shipbuilding powerhouse.

In terms of cumulative new orders over the first four months of this year, China still remains top shipbuilding country having secured 78 vessel orders worth 1.43 million CGTs. Korea is the runner-up with 1.23 million CGTs, or 34 ships. Italy and Finland came in third and fourth with eight orders worth 740,000 CGTs and two orders equivalent to 330,000 CGTs, respectively. Japan ranked fifth with 250,000 CGTs, or 11 ships.

Chinese shipyards held the biggest order backlog of 26.82 million CGTs, trailed by Japan with 17.73 million CGTs and Korea 17.62 million CGTs.

The prices of crude carriers that have dropped by up to $2 million per unit monthly from December to March stayed flat in April. The price of a Capesize bulker rose more than $500,000 each, the first increase since September.

The prices of Liquefied natural gas (LNG) carriers, on the other hand, fell further in April after retreating $2 million in the previous month.

By Moon Ji-woong

[ⓒ Pulse by Maeil Business News Korea & mk.co.kr, All rights reserved]