Order book shrinkage cuts Hyundai Heavy demand for China steel

FOR the first time in five years, Hyundai Heavy Industries, the world's largest shipbuilder, indicated that it may cut back on the number of steel-plates it buys from China.

According to a report filed by the China Economic Review, the company attributed the shift to fewer of ship orders, as well as the possibility of purchasing plates from Japan or Korea instead, with chief operating officer Kang Chang June saying materials in the two countries were equally as cheap as in China.

Korean plate makers Dongkuk Steel Mill and Posco, with their newly build furnaces, are expected to help boost the nation's production by 37 per cent.

Overall usage of steel plates however are expected to decline. Plate utilisation at Hyundai Heavy last year was nearly 25 per cent lower than originally projected.

(Source: www.Schednet.com)