- newbuild prices under pressure as steel plate prices surge
- main reason for huge net and operating losses due to increased cost from a surge in prices of steel plates
Sharply contrasting fortunes from two Korean conglomerates last week have sparked conjecture on whether new-build prices will head further north says an article on Splash247.
New-build prices rise
According to Cleaves Securities, new-build prices have risen by 12% year-to-date, the majority of the price increase down to higher steel prices. A VLCC new building has increased by $12m in steel costs alone this year.
Soaring steel prices
Hyundai Heavy Industries reported a Q2 loss last week, citing soaring steel plate losses for its red ink performance, while Posco, South Korea’s top steel mill, registered an all-time record quarterly result. Yards have already this year put some contracts on hold until there was more clarity over steel prices and then, in many cases prices were renegotiated higher.
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Source: Splash247
