Japanese shipbuilders received new orders of 18 vessels equivalent to 823,550gt, which is up by 75.3pc from the prior year, according to data from the Japan Ship Exporters’ Association (JSEA). The sustained recovery of the shipbuilding industry is likely to boost finished steel plate consumption in the country.
High export orders in July led to a seventh consecutive month of year-over-year increase, indicating a steady recovery from the pandemic.
Out of 18 vessel orders in July, 15 were bulk carriers, while 2 general cargoes and a tanker. From June 2021, July volume, however, was down 61pc from 2.10mn gt. Historically, during summer (June to mid-Sept) overseas demand for shipbuilding is believed to slow down ahead of Obon celebrations. Market activities are expected to further slow from August 13-16.
In FY2022, (Apr-July2021) Japan received export orders of 121 vessels, totaling 6.37mn gt. Out of total orders, 41pc of orders are to be delivered in FY2022 and 53.9pc in FY2023, added JSEA.
The Japanese shipbuilding industry is hopeful for recovery in the coming years amid stiff competition from South Korea and China.