China's Shipbuilding Hits Record Highs Across Three Key Metrics, New Orders Surpass Previous Annual Peak
Claire Weston
China's Ministry of Industry released H1 data showing completions, new orders, and order backlog all at historic highs. New orders alone — 121 million deadweight tonnes in just six months — already surpass the highest full-year total ever recorded, signaling an accelerating concentration of global shipbuilding in China.
How strong are the numbers?
H1 completions hit 36.5 million DWT, up 51.2% year-on-year. The order backlog stands at 363.25 million DWT, up 54.9%.
The standout: new orders reached 121.06 million DWT, a 173.1% surge. This means → half a year's intake has already exceeded the highest full-year order total in history.
In plain terms = when global shipowners place orders for bulk carriers, container ships, and tankers, over 80% of each category now goes to Chinese yards — a concentration level approaching outright dominance.
Why are ship prices rising too?
Shenwan Hongyuan notes that tanker prices have climbed steadily this year, pulling other vessel types higher alongside them.
The mechanism: different ship types share the same yard capacity. Once tanker orders fill the slots, container ships and bulkers must queue — so quoted prices across every type rise in lockstep.
This means → the price rally is not a single-segment story. It is a capacity-bottleneck-driven, broad-based repricing — and unlikely to reverse in the near term.
What are Korean yards doing?
China Galaxy Securities flags that South Korea has set up a Korea-U.S. shipbuilding cooperation and investment body, potentially accelerating Korean yard investment in the United States.
Meanwhile, floating data centers — a concept that puts data-center hardware on ships moored at sea — are drawing rising interest. All three major Korean builders have received client orders.
In plain terms = Korean yards are betting on two new tracks — the U.S. market and offshore data centers — with expected margins above those of their most profitable segment today, LNG carriers.
Which Hong Kong-listed names are delivering?
CSSC Defence (00317) guided H1 net profit at RMB 7.9–8.9 billion, up 50%–69% year-on-year, citing strong industry conditions, higher gross margins, and a jump in investment income.
Dajin Heavy Industry (01081) recently signed a bulk-carrier contract worth roughly RMB 2.1 billion with a Greek shipowner; its year-to-date shipbuilding orders now exceed RMB 10 billion.
Citi initiated coverage with a "Buy" rating and a HK$50 target, naming Dajin its top pick in the China wind-power equipment sector. Citi forecasts net profit tripling from 2025 to 2028 and sees shipbuilding as additional upside.
How long can the upcycle last?
New orders have smashed the full-year record in just six months, but whether these orders translate into sustained earnings delivery is the real test of this cycle's depth.
This reflects a market in a "volume-and-price-both-rising" sweet spot — yard utilization rates are extreme and ship prices are well-supported.
In plain terms = the data right now is flawless. The real question lies ahead — if global trade or shipping demand cools, whether the backlog can be delivered on schedule and prices can hold will determine if this is a super-cycle or a one-off spike.
Content is for reference only, not financial advice.