Sinopacific warns of rising steel prices

Shanghai: Privately-run Sinopacific Shipbuilding Group is bracing itself for rising steel prices and has implemented strict cost control measures. Chinese firms Angang Steel and Baosteel have been continually adjusting their ship plate prices upward, and prices are expected to continue to increase, according to Simon Liang, chairman of Sinopacific. The shipbuilder noted that the average price for ship plates have jumped by 87% in 2010. The Chinese shipbuilding industry experienced a first huge jump in steel material prices in 2008 when prices at some steel producers reached RMB10,000 ($1,540) per tonne, resulting in price increases of 21-30% over four months. In addition, other raw material prices and labour prices have also increased, Liang noted. “Cost control became the key for the fortunes and the very survival of shipbuilding enterprises,” Liang said. [01/06/11]