[Featured Stock] Joseon Shares Caught in the Spring Breeze

[Asia Economy Reporter Junho Hwang] Following a favorable order wind, shipbuilding stocks are sailing with rising sails in the stock market on the 12th.

As of 10:28 AM on this day, Korea Shipbuilding & Offshore Engineering, listed on the KOSPI, was traded at 133,000 KRW, up 3.91%. Daewoo Shipbuilding & Marine Engineering also rose 3.02% to 28,950 KRW. Hyundai Mipo Dockyard increased by 2.45% to 66,800 KRW, and Samsung Heavy Industries was traded at 7,670 KRW, up 1.99%.

The rise in shipbuilding stocks today is analyzed to be due to the recent favorable order trend. According to Shin Young Securities, the new ship price index recorded 132 last week (April 9), up 2 points compared to two weeks ago.

By ship type, newbuilding prices for tankers such as VLCC, Suezmax, and Aframax each rose by 1 million USD. MR tankers increased by 700,000 USD, while among dry bulk carriers, Capesize rose by 500,000 USD, Panamax by 500,000 USD, Handysize by 700,000 USD, and Handymax by 500,000 USD. Among LPG carriers, the newbuilding price for VLGC fell by 500,000 USD, whereas among container ships, the 13,000 TEU class rose by 2 million USD. The 6,000 CEU class car carriers also increased by 1 million USD.

The total number of ship orders over two weeks was 69 vessels. This included 9 oil tankers, 5 LPG carriers, 1 LNG carrier, 8 dry bulk carriers, 38 container ships, 1 offshore support vessel, 2 passenger or cruise ships, and 1 other vessel. The cumulative order volume reached 379 vessels, more than three times the 109 vessels ordered in the same period last year.

Researcher Yeonseung Jeong of NH Investment & Securities stated, "Due to strong demand for iron ore, a freight premium was formed again for shipments on the Brazil route in late May," adding, "It will be necessary to check the impact of the cyclone occurrence in Western Australia later this week." He further analyzed, "While demand for coal and Northeast Asian steel cargo has improved mainly in the Pacific region, grain shipments from the Atlantic have decreased, resulting in contrasting conditions by water area."