(Yicai Global) Feb. 1 -- The effective use of China’s shipbuilding capacity climbed to the highest in a decade last year, according to the industry’s national association.

The shipbuilding capacity utilization index, or CCI, rose 22 points to 764 in 2022, the China Association of the National Shipbuilding Industry said on its website today. 

In the first quarter of last year, orders placed with key shipbuilders increased from a year earlier, but dipped compared with the final quarter of 2021, as crude oil and natural gas prices spiked and the international shipping market remained active, the association said. The CCI for the period also rose on an annual basis, but fell on a monthly comparison.

In the following three months, the global shipping market remained active, while ship production in China fell sharply due to Covid-19 outbreaks, causing the CCI fall back, the CANSI said.

The international market softened in the third quarter, but work at Chinese shipbuilders picked up significantly as the coronavirus flareups came back under control. The price of steel for ships also fell, the yuan weakened against the US dollar, and profits rose, fueling a rebound in the CCI, the association said.

In the final quarter of 2022, the international shipping market dropped from a high level, while new ship orders rose over the previous quarter and the capacity utilization improved, it said.

This year, the global economy will face greater downward pressure, causing reasonable fluctuations in the global shipping and new ship markets, but the demand for new vessels will not shrink greatly, so shipyards will have enough orders. The CCI will also see ups and downs within a normal range this year, the CANSI concluded.

Editor: Futura Costaglione