Issuing agency: China Association of the National Shipbuilding Industry
Column: run analysis
source: https://www.cansi.org.cn/cms/document/10170.html
From January to June 2017, according to the express data of each unit, combined with the actual data of the same period in 2016, through comparative analysis, the completion status of all 16 member units of SPCC (accounting for 80% of the industry's handy-type and above ship repair capacity) is as follows:
1. Ship repair output value and annual output value target: 16 SPCC member units completed ship repair output value of 6.52 billion yuan, a year-on-year increase of 1.5%, completing 46.1% of the total annual target output value. Each company has adjusted its annual output value target in 2017 to varying degrees based on its judgment on the ship repair market. In general, the 2017 annual output value target has been adjusted down by about 5.3% year-on-year.
2. Completed ship repairs: 16 SPCC member units completed 2,483 ship repairs, a year-on-year increase of 27.6%. Among them, the number of completed ship repairs at Youlian Shipyard, Bei Shipbuilding Industry and Dachang Shipyard increased by more than 50% year-on-year.
It is worth mentioning that Zhoushan Xinya achieved year-on-year growth in output value despite a slight year-on-year decrease in the number of completed ship repairs; the year-on-year growth in output value of Fujian Huadong, Longshan Shipyard, Nanyang Star and Wanbang Yongyue exceeded the year-on-year growth rate in the number of completed ship repairs.
3. Average output value of a single ship: Among the 16 SPCC member units, Youlian Shipyard has the highest average output value of a single ship, but there is still a significant decrease year-on-year. Judging from the comprehensive situation of the 16 companies, the average output value of a single ship is declining. The average output value of a single ship of Zhoushan Xinya, Wanbang Yongyue, Longshan Shipyard, Fujian Huadong, Nanyang Star and Harbor Shipbuilding Industry has increased year-on-year. It reflects the company's product structure optimization and customer quality improvement.
Forecasts in terms of economic benefits will rely on data from the national statistical system.
2. Highlights of the ship repair market in the first half of 2017
1. COSCO Shipping Heavy Industry successfully completed the emergency maintenance of the "Ovation of the Seas" at COSCO Zhoushan Shipyard. This is the largest luxury cruise ship repaired by a Chinese shipyard.
2. Zhoushan Pacific Offshore Engineering has completed six 400,000-ton VLOCs entering the factory and docking, indicating that China’s ship repair industry has the conditions to repair ultra-large ships.
3. The ship repair industry organization insists on seizing the "white, red and green" (new national standards, new red books and new technologies) and explores the deepening reform of industry management, which has been well received by enterprises and the government.
3. Outstanding problems in the ship repair market in the first half of 2017
1. The number of ships completed by 16 SPCC member units increased by 27.6% year-on-year. The industry's dock utilization rate rose from 70% to 95%, but the ship repair output value increased by only 1.5%. This reflects: (1) Low-price competition is still a prominent problem in the current ship repair market; (2) Orders are still mainly based on the number of ships, and the product structure has not improved much. The reason for this phenomenon is also related to the reduction in the number of single ship projects and the reduction in ship modification projects.
2. The transfer of shipbuilding production capacity to ship repair, the commissioning of some new factories, the reorganization or reorganization of some enterprises, the resurrection of ship repair "zombie companies" and other investments and allocation of resources have led to a certain increase in the production capacity of the ship repair market in 2017. Some order-taking operations have already formed a scale, which has a certain impact on the existing ship repair market. This also reflects that the land, coastline, customs, maritime, environmental protection and other competent authorities in some places and regions. Insufficient efforts are made to deal with low-end overcapacity.
The ship repair industry must accelerate the formation of an industry standard operating model with Chinese characteristics in the international production capacity cooperation under the "Belt and Road" initiative. Industry organizations will continue to make full use of the scope and influence of the SPCC, continue to carry out industry self-discipline among SPCC organization members, and actively call on national customs, environmental protection, safety and other competent authorities to deal with unfair competitors that disrupt the order of market competition in the entire industry in accordance with the law.
The ship repair industry must effectively implement "shifting from Made in China to Created in China, from pursuit of speed to quality improvement, from product provision to casting brand". Industry organizations recommend and encourage key ship repair companies to vigorously improve their own technology and management level through technological process changes, and promote ship repair production capacity to a higher level; change business thinking, optimize product structure, effectively develop high value-added ship repair including offshore products, and work hard to grasp the refit ship project.
The ship repair industry will actively organize ship repair companies to further resolve excess production capacity, adjust existing assets, rationalize productivity layout, and accelerate the pace of overcapacity reduction through mergers and reorganizations. Some companies have achieved initial results in resolving production capacity. For example, CSSC used ship repair resources in the Yangtze River region to deploy in Qinzhou, South China, which not only eliminated excess production capacity in East China, but also filled the gap of large ship repair companies in the Beibu Gulf, meeting the needs of shipping development in the Beibu Gulf region; and in 2016 COSCO Shipping Heavy Industry Co., Ltd., which completed its reorganization at the end of the year, is also worthy of the industry's expectations for its depth of integration of its ship repairing production capacity and its implementation of international production capacity cooperation.
In addition, the ship repair industry organization will once again contact the land, coastline, maritime, customs, environmental protection, safety and other competent authorities to try to intensify the "three reductions, one reduction and one compensation" work for ship repair enterprises that have not met the standards of CB/T 3001-2010.
First of all, the overcapacity of domestic ship repairs on the supply side is even expanding. Although the number of ships to be repaired on the demand side has increased this year and the dock utilization rate has also increased significantly, the market has not yet reached the balance point between supply and demand, and ship repair prices show no obvious signs of rising.
Secondly, the market fluctuations brought about by convention requirements such as ballast water treatment and exhaust gas desulfurization are not expected to be too large. In the second half of the year, my country's ship repairs will still be dominated by routine docking maintenance and repairs mainly due to the expiration of ship certificates.
Thirdly, the number of ship repairs in the second half of 2017 is expected to decline year-on-year, and coping with the challenge of negative year-on-year growth in ship repair output will become an arduous task for the industry and major ship repair companies.
In short, based on the fact that the fundamentals of the shipping market have not improved significantly, industry organizations are cautiously optimistic about the ship repair market in the second half of 2017.