• BIST 98.466
  • Altın 223,953
  • Dolar 5,7050
  • Euro 6,6085
  • İstanbul 18 °C
  • Ankara 19 °C

Evolution of steel

Evolution of steel
Since 1990, steel has been used in the construction of some of the world’s biggest thrill rides but in recent years it is the steel market itself that has seen all the dips and climbs of a high speed rollercoaster.

As the global shipping industry went through a major build cycle between 2002-2007 demand for steel plate grew over 350%, placing a significant strain on existing mill capacity and driving prices and profitability higher and higher.

However, the inevitable investment in new capacity that followed (around a 200% increase between 2002 & 2007) was followed by the global financial crisis and a major downturn in new ship orders, causing an estimated 85% drop in steel plate requirements between 2007 & 2009.

More recently, the conventional ship market has seen some recovery but is unlikely to reach the heady heights the world’s steel mills had in mind during their expansion. POSCO and Nippon Steel are both currently trading at 50% discounts compared to 2007 highs and, along with other major plate mills such as JFE and Dongkuk, are looking to align themselves with the offshore industry to revive their utilization.

On the surface this seems to make sense – the major Korean heavy construction yards of Samsung, Hyundai and Daewoo, the world’s largest buyers of steel plate, have shifted their strategic focus and backlogs significantly in recent years.

In 2013 offshore orders accounted for c.60% of SHI revenues compared to just c.20% in 2007. For South Korean yards the offshore industry represents a more efficient, profitable and sustainable future.
The problem is with offshore units needing 8-10 times less steel plate per $ of order value compared to conventional ships the country’s mills could well be steeling themselves for a rough ride.

 

http://turkishmaritime.com.tr

This news is a total 1232 time has been read
  • Comments 0
    UYARI: Küfür, hakaret, rencide edici cümleler veya imalar, inançlara saldırı içeren, imla kuralları ile yazılmamış,
    Türkçe karakter kullanılmayan ve büyük harflerle yazılmış yorumlar onaylanmamaktadır.
    Bu habere henüz yorum eklenmemiştir.
Other News
  • TOTE Places Hawaii Plans on Hold27 January 2018 Saturday 12:18
  • Turkey's Yasa in for ultramaxes at NACKS28 November 2017 Tuesday 11:24
  • Rickmers Maritime revises debt restructuring plan22 September 2016 Thursday 08:39
  • Kleven to Build Up to Four Expedition Vessels for Hurtigruten25 April 2016 Monday 18:12
  • IMO Representatives Discussed Migrant Issues06 September 2015 Sunday 18:16
  • Golden Anchor Awards 201506 September 2015 Sunday 16:49
  • Asia Tankers-VLCC Rates Dropping15 August 2015 Saturday 12:44
  • USCG Increasing Arctic Presence14 August 2015 Friday 11:58
  • Fennica is on his way to Alaska06 August 2015 Thursday 12:21
  • Tidal Power in Alaska Villages04 August 2015 Tuesday 15:34
  • All Rights Reserved © 2006 TURKISH MARITIME | İzinsiz ve kaynak gösterilmeden yayınlanamaz.
    Phone : 0090 212 293 75 48 | Fax : 0090 212 293 75 49 |