The price of the ABS A ship plate rose by 10%

Under the "coercion" of steel manufacturers, Korean shipbuilding enterprises can not accept the reality of steel price rise. In the absence of new orders in the current context, the rise in ABS A ship plate prices will further aggravate the losses of South Korean shipyards.

It is reported that South Korean shipyards and ABS A ship plate manufacturers recently reached an agreement, agreed to this year's wholesale steel plate prices again 50,000 won (44.39 U.S. dollars) to 70,000 won / ton, close to 10%. According to industry sources, the latest round of raising prices will raise the price of steel to more than 700000 won. Previously, South Korean steelmakers insisted they couldn't continue to postpone price increases as raw material costs rose, and three major South Korean shipyards, Hyundai Heavy, Samsung Heavy and Daewoo Shipbuilding, finally agreed to the ABS A ship plate price increases.
It is understood that the new ABS A ship plate price will be applied from the second half of this year, which means that the ABS A ship plate already ordered in July will be able to mark the new price.

Steel plate is the core material of shipbuilding. According to KOSHIPA, steel sheets account for 15% to 20% of total shipbuilding costs.

With the continuous growth of ABS A ship plate prices, the Korean shipbuilding industry is worried that the net profit of ship enterprises will further deteriorate. In fact, the cumulative losses of Hyundai Heavy and Samsung Heavy from the fourth quarter of last year to the second quarter of this year were 641.7 billion won and 739.7 billion won, respectively, due to the increase in shipbuilding steel plate prices. The price of ship steel plate is usually reflected in the profit from one to two years after the order is obtained.

In the first half of this year, the price of Korean steel plates has increased by 50000 won. In July, KOSHIPA called on steelmakers to maintain their current prices for heavy steel plates, saying that if the price of heavy steel plates continued to rise by 50,000 won in the second half of the year, it would bring shipyards an additional 300 billion won in manufacturing costs.

However, major steelmakers, including POSCO and Hyundai, are expected to continue to raise ABS A ship plate prices. These companies believe that, after considering the challenges of the shipbuilding industry, steel manufacturers have offered shipbuilders low prices for years.