Another 7 Supramaxes at Hantong - following Lloyd's List article for

your reading:-

 

Jiangsu Hantong nets $205m seven bulker order

Hui Ching-hoo and Richard Meade - Friday 14 August 2009

 

JIANGSU Hantong Heavy Industry has become the latest Chinese

shipbuilder to bag a clutch of newbuilding contracts, with a $205m

order for seven bulk carriers.

 

Following the recent drought of orders, Chinese yards have seen a

significant improvement in new business since the beginning of June.

 

The country s shipyards received 41 newbuilding orders, totalling 4.7m

dwt, in June, according to the China Association of the National

Shipbuilding Industry. These orders included Grand China Logistics

contract for 30 bulkers, totalling 4.1m dwt, at Zhoushan Jinhaiwan

Shipyard.

 

Brokers have warned, however, that the number of orders is still

limited in comparison with previous years and pointed out that

overcapacity remains a concern.

 

The orders also reveal that vessel prices are well down on previous

highs.

 

Despite all this, more orders are expected to be confirmed imminently.

 

Earlier reports suggesting that National Iranian Tanker Co was in

talks with Dalian Shipbuilding Industry and Shanghai Waigaoqiao

Shipbuilding to place newbuilding orders for six very large crude

carriers, have now progressed, Lloyd s List has learnt.

 

Brokers expect a deal that will see between four and six VLCCs built

at each yard to be finalised very shortly.

 

 The Chinese are super-eager to do this, and the banks will come up

with some attractive finance scheme to support it,  one China-based

broker said.

 

 Beijing is extremely keen at the moment to support shipbuilding,  the

broker said.  The banks have every Tom, Dick and Harry lining up at

the moment, so they can afford be selective. But on deals like this,

they are keen.

 

The Jiangsu Hantong order to build seven 57,000 dwt bulk carriers was

placed by unnamed Southeast Asia shipping companies at a total cost of

Yuan1.4bn ($205m). The order value equates to a price of $29.3m per

vessel.

 

Although a welcome addition to the Nantong-based shipbuilder s

orderbook, the price of the newbuildings, for delivery between 2010

and 2011, is more than 40% lower than the $50m price tag attached to

similar vessels in September 2008.

 

According to Clarkson Research Services, Jiangsu Hantong has an order

backlog of 45 vessels stretching through to early 2013 delivery. The

total value of the yard s orderbook is thought to be Yuan4bn.

 

Although two new orders were cancelled at the shipyard this year, a

source close to the yard has stressed that its business remains

healthy.

 

 The shipyard took an order worth Yuan200m in March,  he said.

 

Jiangsu Hantong booked Yuan1.7bn in revenues in the first seven months

of 2009, representing a 238% year-on-year increase.

End