In a client briefing Erik Nikolai Stavseth, an analyst at Arctic Securities, argued that the collapse of more Chinese shipyards will likely take a toll on newbuilding prices.
“We see the fact that yards are not only restructured, but actually liquidated as a positive,” he told investors Tuesday.
“Although yard capacity remains stubborn, the demand for commodity shipping has abated over the past 12 months and we would not be surprised to see more yards entering difficulties.
“This will in turn push prices lower as yards compete not only on margins, but on survival as well – supporting our view of lower newbuilding prices.”
As we reported, STX Dalian entered court receivership last year and was given twelve months to come up with a restructuring plan.
The yard is said to owe over CNY 24bn ($3.8bn) to more than 700 creditors, including CNY 480m owned to 5,000 employees in outstanding salaries.
