Japan's January newbuilding orders fall 69%

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Mike Grinter, Hong Kong - Tuesday 17 February 2009

JAPAN’S shipbuilders saw orders fall 69% in January.
Orders received in the first month of the year totalled 193,700 gt in January, a fall of 69% compared with the same period last year. 
Japan Shipbuilders’ Association chairman Masamoto Tazaki told a Tokyo press conference: “The serious global economic recession has slowed the demand for marine transportation.” 
Japanese shipbuilders failed to fully capitalise on the last shipbuilding boom, crippled by higher raw material prices and a strong Yen. 
Now they are banking on a significant cut in the price of steel plate in order to stay afloat. 
The shipyards will enter into negotiations with national steel mills next month hopeful that they can attain similar reductions thrashed out between Japanese steel mills and leading South Korean shipyards earlier this month. 
Hyundai Heavy Industries, the world’s largest shipbuilder, is widely thought to have got a reduction of about 46% in the per tonne steel plate price. It will pay $700 per tonne for its next steel delivery from Japan. 
Thirteen ships were contracted in 2005, seven in 2006, five in 2007 and two in 2008.