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China's shipbuilding industry may come close to matching world leader Republic of Korea (ROK) in terms of compensated gross tonnage (CGT) in 2007 and take a 30-35 percent share of the global market, according to the China Securities Journal.

 

Gao Xiaochun with Bohai Securities made the prediction following the release of January statistics from the authoritative Clarkson Research Studies.

 

China shipbuilders had orders for 14 million CGT in January, accounting for 50 percent of the world's total. The ROK had orders of 600,000 CGT and Japan had 300,000 CGT, according to the UK report.

 

However, China is far behind ROK and Japan in terms of contract value, because China lacks advance equipment and lags behind the two countries in research and development.

 

The sector maintained its growth momentum as the price for oil tankers stays high, while bulk cargo vessels continue to rise.

 

At the end of 2006, the prices of 150,000 dwt (dead weight ton) and 110,000 dwt oil tankers rose by US$2 million and US$1 million, respectively.

 

As for bulk cargo carriers, the price of 170,000 dwt Capesize bulk carrier increased by US$9 million, or 13.24 percent, and the prices of 74,000 dwt Panamax bulk carrier and 50,000 dwt Supramax bulk carrier rose by US$3 million, respectively.

 

The country has two major shipbuilding companies, China State Shipbuilding Corporation, which is the parent company of three listed subsidiaries, and China Shipbuilding Industry Corporation, which is the parent of one listed subsidiary.

 

(Xinhua News Agency March 16, 2007)