S. Korean shipbuilders benefit from dollar surge and falling steel costs
South Korean shipbuilders, with secured orderbooks covering the next three to four years, are positioned to leverage structural advantages stemming from a robust U.S. dollar and stable steel plate prices. The shipbuilding sector, which prices vessels in U.S. dollars, is widely recognized as a prime beneficiary of high exchange rates. Meanwhile, prices for heavy plates—steel plates exceeding 6 millimeters in thickness, which account for roughly 20% of a ship’s construction cost—remain low, driven by declining iron ore prices and increased imports of cheaper Chinese products. On Dec. 6, the foreign ...
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