Newbuilding prices made a downturn again in a week and shipbuilding industry is said to need more time to see a meaningful upturn.

    Analyst Jung Dong-Ik at Hanwha Investment & Securities of Korea said on June 10,“Clarkson’s newbuilding price index released last Friday came at 126p, down by 0.8% from 127p recorded from a week ago,” and added, “The newbuilding price index announced onMay 31 was seen to have successfully bounced back since June 2011, however the figurereturned to its original position over a week.”

    Jung said the current newbuilding price index showed just a little change in its decimal point standing at around 126.5p and explained, “The present newbuilding prices declined to the level where any yards could not make understandable profits and a meaningful upturn is hardto see.”

    He continued, “Fleet supply-demand imbalance is prevalent in shipbuilding industry andJapanese yards could solidify its sales thanks to a weak yen. Furthermore, amid declined pricesof thick plate, newbuilding price’s sharp or a meaningful upturn which allows enoughmargins will be difficult to see.”