Korean shipbuilding sector rides high on green trend

An uptick in orders for eco-friendly ships is driving up newbuilding prices, igniting a bullish trend in South Korea’s shipbuilding sector. On May 13, Samsung Heavy Industries shares rose 1.52% to 10,040 won, hitting a yearly high of 11,200 won in early trading. HD Korea Shipbuilding & Offshore Engineering also surged 1.46% to 131,800 won, reaching a 52-week high of 133,800 won.

Hanwha Ocean, HD Hyundai Heavy Industries, and Hyundai Mipo Dockyard are also witnessing robust activity, as are shipbuilding materials and parts firms like HSD Engine, Oriental Precision & Engineering, and Hankuk Carbon.

The industry’s resurgence is buoying hopes for continued growth. The Clarkson Newbuilding Price Index, as of last month, stood at 183.92, comparable to its 2007 peak. Additionally, anticipation is mounting within the domestic shipbuilding sector over potential gains from the U.S. government’s probe into unfair trade practices in Chinese shipbuilding and shipping.
Source: The Chosun Daily