Higher steel prices are set to delay South Korean shipbuilders’ return to profitability, despite surging orders and rising prices for new container ships and gas tankers.
South Korea’s biggest producers are struggling to persuade customers who have already ordered new vessels to pay more because of higher prices for steel, which accounts for around a fifth of shipbuilding costs.
The Korean shipbuilders recently agreed to an eight per cent increase in steel plate prices, on top of a near doubling in the price over the past two years, according to a company official and an industry analyst.
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