China’s new ship orders have increased sharply since the beginning of the current year amid the improvement in the global shipbuilding industry, reversing the overall downward trend seen in recent years, according to local Chinese media reports.
In 2021, the stimulus policy in Europe and the US will take effect and exert a positive impact on shipping volumes, which may push up fleet sizes. Moreover, the updating of ships will start to increase as of 2023, continuing for 10 years. Accordingly, it is thought that China’s shipbuilding industry will enter a long-term uptrend, which will provide solid support for steel demand.