Recovery of ship prices may positively affect shipbuilding in 2003

The 2002 steep drop in ship prices may well be over as prices look like they are heading toward recovery with shipbuilding increases predicted for this year.
December 29. 2002, According to "The present condition of ship prices", a report from the Korea Shipbuilding Industry Association, prices of received orders, which had continuously declined since June of last year, began to gradually stabilize November last year, putting stress on tankers and bulk carriers.
The 150,000 DWT Suezmax class tanker hit its lowest price at 43,000,000 dollars between August and November, but rose to 43,500,000 dollars last month. The 110,000 DWT Apramax class tanker that bottomed out at 33,500,000 dollars in December rose to 34,500,000 dollars.
Regarding bulk carriers, the order price of a 170,000 DWT Capesize class vessel rose continuously over 3 months, 34,000,000 dollars in August, 35,000,000 dollars from September to October, and 36,000,000 dollars in November. Lasr month it hit 36,300,000 dollars. Continuing with the trend, the 75,000 DWT Panamax class vessel hit bottom between July and November, but rallied to 21,300,000 dollars last month.
47,000 DWT class tankers, 30,000 DWT class bulk carriers and 3,500 TEU and 1,100 TEU class container ships maintained the same price level as November at 26,500,000 dollars, 15,000,000 dollars, 33,000,000 dollars and 15,500,000 dollars, respectively.
Only LNG tankers fell in price last month from 152 to 150 million dollars under service surpluses. Orders for the vessels in 2002 were low.
A shipbuilder said, "if this recovery in ship prices continues, it will have a very positive effect on shipbuilding in 2003"