Issuing agency: China Association of the National Shipbuilding Industry
Column: Capacity Utilization Monitoring Index
source: https://www.cansi.org.cn/cms/document/17941.html
The China Shipbuilding Capacity Utilization Monitoring Index (CCI) in the second quarter of 2022 was 700 points, a decrease of 6 points and 0.8% year-on-year compared with 706 points in the same period last year; compared with 707 points in the first quarter, it was a decrease of 7 points and a 1.0% month-on-month decrease.
Specifically, the international shipping market remained active in the second quarter, with the Clarkson Comprehensive Freight Index reaching a new high since 2009. The new ship price index increased by 16.5% year-on-year and 3.8% month-on-month, driving the leading indicators to rise simultaneously. In the second quarter, the price of marine steel fell slightly, and the RMB exchange rate depreciated slightly, which was conducive to improving the profitability of shipbuilding companies. The domestic epidemic spread in many places, especially in April and May, major local disruptions and blockages occurred. It has had a greater impact on shipbuilding companies, and production capacity utilization has dropped significantly, dragging down the synchronization indicator. Overall, the increase in the leading indicator of the shipbuilding capacity utilization index in the second quarter partially offset the decline in the synchronization indicator, and the CCI index has fallen slightly, but is still within the normal range.
It is expected that in the third quarter of 2022, the new ship market will still maintain a certain degree of enthusiasm, and the growth rates of the comprehensive freight index and new ship price index will all slow down. As major local breakpoints and blockages are cleared, companies fully resume work and reach production, the capacity utilization of shipbuilding companies will return to normal levels, and the CCI will remain within the normal range.
Leading indicators: focus on monitoring the number of ship orders held by shipbuilding companies, new ship price index and comprehensive freight index; concurrent indicators: focus on monitoring shipbuilding companies' capacity utilization, main business income and operating utilization rate; lagging indicators: growth rate of global fleet ownership.
Figure China Shipbuilding Capacity Utilization Monitoring Index (Quarterly)