Recently, news about the large-scale shipping companies in South Korea against the trend of price increases is endless. Sun Chongbo of China Shipbuilding Market Research Center confirmed this statement. Sun Chongbo said that recently, large shipbuilding companies such as Hyundai Heavy Industries and Samsung Heavy Industries began to raise the price of new ships, which is 10% higher than the previous price level.
The reporter believes that under the situation that the global shipbuilding market has not fully improved, South Korea's large shipping companies dare to increase the price of the ship against the trend. The main reason is nothing more than the current price increase of steel companies in the international market.
It is reported that since July this year, Japanese steel companies will raise the price of their shipbuilding slabs exported to South Korea by US$200 per ton. At present, Japanese steel companies have reported their ship board price increase plans to Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding Marine. It is understood that JFE Steel Group and Nippon Steel currently supply Korean ship plates at a price of US$700/tonne (FOB price), and Japanese steel companies want to increase it to US$900/ton.
Similarly, China's shipbuilding industry is also facing problems such as rising raw material prices, rising labor costs, and possible appreciation of the renminbi, but it has not given the public a clear message of price increases.
In fact, in the past, due to the rising prices of raw materials, the cost has increased, and the case of shipbuilding price increases is not uncommon.
According to historical data, from January 2003 to March 2005, the ship plate price has risen from 3,100 yuan per ton to 5,950 yuan, almost doubled. The head of a shipbuilding company in Shanghai also said that they had 200,000 tons of steel for shipbuilding in 2004, and the price increase of steel directly increased the cost by 110 million yuan. According to the order, the steel used in 2005 was 230,000 tons, and the annual cost increased by 450 million yuan due to the increase in steel prices. Such a huge amount of cost surges and cannot be digested inside the shipyard. According to the international market practice, the shipbuilding industry is scheduled to sell, and the shipbuilding cycle is generally about two years. The contract price signed two years ago is a price calculated based on the steel cost at that time.
Therefore, the shipyard cannot transfer the increased cost to the next home like the steel company. On the other hand, even considering the price increase of steel, the price of the ship cannot be set too high, because the Chinese shipbuilding industry is facing fierce competition with Asian shipbuilding countries such as Japan and South Korea. If the quotation is high, the order will not be received. Once the contract is signed, the cost will be higher.
In this case, although the shipyard has tapped the potential through various measures, it is only a 20% of the total ship cost. In other words, it is to reduce the manufacturing cost to zero, and it can't offset the price increase pressure of steel. However, since the peak of 5,950 yuan in March 2005, things have changed dramatically. The price of steel has been raging all the way. By December, the price was only 3,200 yuan. At this time, many steel mills began to have a sales crisis, and the status of steel enterprises and shipping companies fell.
Unlike the general household appliance industry, the shipbuilding industry is the industry that consumes the most steel for a single product, and its ability to share steel costs is weak.
How to coordinate the contradiction between steel companies and shipbuilding companies. The two sides cooperated to form an alliance, jointly bear the risks brought by price fluctuations, and establish a strategic alliance of profit sharing and risk sharing mechanism. It seems that it should be a very good idea, and it has already been mentioned. But the question is: Can steel companies and shipbuilding companies, which are two industries with large upstream and downstream industries, really establish strategic alliances? When the market changes drastically, can steel companies and ship companies be willing to sit on the same boat?
The reporter believes that under the situation that the global shipbuilding market has not fully improved, South Korea's large shipping companies dare to increase the price of the ship against the trend. The main reason is nothing more than the current price increase of steel companies in the international market.
It is reported that since July this year, Japanese steel companies will raise the price of their shipbuilding slabs exported to South Korea by US$200 per ton. At present, Japanese steel companies have reported their ship board price increase plans to Hyundai Heavy Industries, Samsung Heavy Industries and Daewoo Shipbuilding Marine. It is understood that JFE Steel Group and Nippon Steel currently supply Korean ship plates at a price of US$700/tonne (FOB price), and Japanese steel companies want to increase it to US$900/ton.
Similarly, China's shipbuilding industry is also facing problems such as rising raw material prices, rising labor costs, and possible appreciation of the renminbi, but it has not given the public a clear message of price increases.
In fact, in the past, due to the rising prices of raw materials, the cost has increased, and the case of shipbuilding price increases is not uncommon.
According to historical data, from January 2003 to March 2005, the ship plate price has risen from 3,100 yuan per ton to 5,950 yuan, almost doubled. The head of a shipbuilding company in Shanghai also said that they had 200,000 tons of steel for shipbuilding in 2004, and the price increase of steel directly increased the cost by 110 million yuan. According to the order, the steel used in 2005 was 230,000 tons, and the annual cost increased by 450 million yuan due to the increase in steel prices. Such a huge amount of cost surges and cannot be digested inside the shipyard. According to the international market practice, the shipbuilding industry is scheduled to sell, and the shipbuilding cycle is generally about two years. The contract price signed two years ago is a price calculated based on the steel cost at that time.
Therefore, the shipyard cannot transfer the increased cost to the next home like the steel company. On the other hand, even considering the price increase of steel, the price of the ship cannot be set too high, because the Chinese shipbuilding industry is facing fierce competition with Asian shipbuilding countries such as Japan and South Korea. If the quotation is high, the order will not be received. Once the contract is signed, the cost will be higher.
In this case, although the shipyard has tapped the potential through various measures, it is only a 20% of the total ship cost. In other words, it is to reduce the manufacturing cost to zero, and it can't offset the price increase pressure of steel. However, since the peak of 5,950 yuan in March 2005, things have changed dramatically. The price of steel has been raging all the way. By December, the price was only 3,200 yuan. At this time, many steel mills began to have a sales crisis, and the status of steel enterprises and shipping companies fell.
Unlike the general household appliance industry, the shipbuilding industry is the industry that consumes the most steel for a single product, and its ability to share steel costs is weak.
How to coordinate the contradiction between steel companies and shipbuilding companies. The two sides cooperated to form an alliance, jointly bear the risks brought by price fluctuations, and establish a strategic alliance of profit sharing and risk sharing mechanism. It seems that it should be a very good idea, and it has already been mentioned. But the question is: Can steel companies and shipbuilding companies, which are two industries with large upstream and downstream industries, really establish strategic alliances? When the market changes drastically, can steel companies and ship companies be willing to sit on the same boat?
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