China: Robust shipbuilding demand consolidates China's high-end steel growth.

Storyline Robust shipbuilding demand consolidates China's high-end steel growth Demand for high-end specialty steel from China’s shipbuilding industry is strengthening the country’s domestic steel supply capabilities in the process. At this shipyard in Nantong City, several ship construction projects are underway. The deputy general manager of the yard said modern vessels are more complex and require steel that goes beyond thickness and weight, which can take longer to acquire. Wei Jun, deputy general manager, local major shipbuilder: "The group consumes about 800,000 tons of steel per year. As for the surrounding steel mills, their orders are already maxed out. The normal delivery period is about three months, but it has now been extended. It used to be around 75 days, but now it may reach about 90 days." The manager of another shipyard in the region says a growing number of materials and parts used by Chinese shipbuilders are now domestically produced. It’s helped the industry ramp up production capacity. Lu Ting, deputy general manager, local large container shipbuilder "After 20 years of joint research and development, the localization rate of high-strength marine steel plates has increased from 10 percent to 70 percent, and our production capacity is expected to grow by more than 20 percent over the next [five] years." A report from the China Economic Information Service, the China Shipbuilding Economic Research Center and Xinhua News details China’s acceleration as a global leader in the shipbuilding industry. According to the report, in Q1 this year new orders at Chinese shipyards surged more than 190% year on year, with so-called "green" vessels accounting for more than 80% of all new orders. [Restrictions: No access Chinese mainland]