CCMI/057CCMI/057

Competitiveness of the Metals Industries

Shipbuilding Industry

Brussels, 30 Sept. 2008

New orders, completions and orderbookNew orders, completions and orderbookCESA Commercial Shipbuilding Activity

0

5,000

10,000

15,000

20,000

1.00

0 C

GT

orderbook new orders completion

orderbook 10,097 11,264 11,056 13,267 12,724 9,652 9,610 12,406 15,738 16,885 16,752 15,423

new orders 3,913 5,494 4,213 7,591 4,534 2,262 3,951 6,798 7,226 5,379 5,425 1,255

completion 4,175 4,925 4,637 4,794 4,870 4,817 4,479 4,194 3,851 4,642 4,870 2,563

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 H1 2008

New orders, completions and orderbookNew orders, completions and orderbookWorld Commercial Shipbuilding Activity

0

50,000

100,000

150,000

200,000

250,000

1.00

0 C

GT

orderbook new orders completion

orderbook 35,313 36,595 37,513 45,881 48,571 48,446 69,807 90,379 104,446 130,424 177,740 191,567

new orders 20,935 18,379 18,926 29,431 23,341 20,471 41,705 45,128 39,588 57,315 85,277 27,569

completion 17,099 18,244 18,241 20,346 20,187 21,396 22,824 25,461 29,353 34,123 34,640 21,070

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 H1 2008

Turnover of main shipbuilding areasTurnover of main shipbuilding areasValue of tonnage completed in the Main Shipbuilding Areas

0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

in m

illi

on

EU

R

CESA 11,143 11,874 11,863 11,560 12,197 13,090 14,328 10,463 9,041 12,968 15,219

South Korea 6,151 6,292 7,720 10,442 9,424 10,103 9,433 9,595 11,683 14,033 16,149

Japan 8,962 8,950 9,726 11,912 11,257 10,274 9,317 9,766 10,151 10,604 12,450

China 2,322 2,563 3,188 4,970 8,514 10,191 12,162

1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007

Price comparison for hot rolled plate

450

550

650

750

850

950

1050

1150

1250

1350

1450

Ste

el p

rice

$/t

on

ne

Asia 500 493 503 513 526 540 532 529 535 535 545 554 548 548 556 559 570 575 578 583 628 641 650 670 668 730 820 864 860 936

EU 650 636 649 699 789 810 822 833 865 854 871 895 881 891 905 936 935 931 969 962 975 998 1023 1005 1024 1044 1161 1265 1292 1385

World 649 646 651 670 717 741 736 737 755 740 743 757 747 748 758 788 800 800 808 814 810 826 833 837 847 887 978 1065 1160 1225

Jan/ 06

Feb/ 06

Mar/ 06

Apr/ 06

May/ 06

Jun/ 06

Jul/ 06

Aug/ 06

Sep/ 06

Oct/ 06

Nov/ 06

Dec/ 06

Jan/ 07

Feb/ 07

Mar/ 07

Apr/ 07

May/ 07

Jun/ 07

Jul/ 07

Aug/ 07

Sep/ 07

Oct/ 07

Nov/ 07

Dec/ 07

Jan/08

Feb/08

Mar/08

Apr/08

May/08

Jun/08

Steel Price EvolutionSteel Price Evolution

European Index

Asian Index

World Index

European Market Share by Ship TypesEuropean Market Share by Ship Types

0,0%

10,0%

20,0%

30,0%

40,0%

50,0%

60,0%

70,0%

80,0%

90,0%

100,0%

2004 2005 2006 2007

Container ships General Cargo Ro - Ro Other Dry Cargo Passenger Fishing Vessels

Steel-intensive Ships

Less steel-intensive Ships

• Shipbuilding sees a clear impact of price Shipbuilding sees a clear impact of price differences in the steel marketdifferences in the steel market

• Due to time-gap between contract signature Due to time-gap between contract signature and delivery, yards take the full inflation riskand delivery, yards take the full inflation risk

• Level playing field for raw material is Level playing field for raw material is essential for steel consumers acting in a essential for steel consumers acting in a global environmentglobal environment

• Effective contribution of down-stream users Effective contribution of down-stream users to climate change jeopardised to climate change jeopardised

ConclusionsConclusions

• Importance of Sectoral action; iron&steel direct Importance of Sectoral action; iron&steel direct employment is employment is 11//3030 of the 23 million jobs mentioned of the 23 million jobs mentioned

• Climate change: additional costs for steel producers Climate change: additional costs for steel producers will harm also down-stream users and their ability to will harm also down-stream users and their ability to contribute to the climate change challengecontribute to the climate change challenge

• ““Global agreements” must not move the costs to the Global agreements” must not move the costs to the down-stream markets (e.g. by trade restrictions)down-stream markets (e.g. by trade restrictions)

• R&D: effective research done in sub-segmentsR&D: effective research done in sub-segments

Comments on the Draft OpinionComments on the Draft Opinion

+++ Thank you for your attention ++++++ Thank you for your attention +++

more info atmore info at

http://www.cesa.euhttp://www.cesa.eu

+++ Back-up ++++++ Back-up +++

Source: SAJ

0.0

5.0

10.0

15.0

20.0

25.0

30.0

35.0

40.0

45.0

50.0

55.0

86 87 88 89 90 91 92 93 94 95 96 97 98 99 00 01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20

JAPAN

KOREA

EUROPE

CHINA

Expected Completion

Newbuilding Capacity

Newbuilding Requirement

50.0

Mill.CGT

29.5

23.7 23.5

35.7

Japan (10.0)

Korea (15.8)

China (14.7)

Europe (6.9)

Shipbuilding Requirement vs. CapacityShipbuilding Requirement vs. CapacitySource: SAJ, September 2006Source: SAJ, September 2006

Shipbuilding Requirement vs. CapacityShipbuilding Requirement vs. CapacitySource: SAJ, September 2008Source: SAJ, September 2008

JAPAN

KOREA

Mill.CGT

0

5

10

15

20

25

30

35

40

45

50

55

60

65

70

75

80

76 78 80 82 84 86 88 90 92 94 96 98 00 02 04 06 08 10 12 14 16 18 20

CAPACITY

SHIPBUILDING COMPLITION

JAPAN

KOREA

CHINA

Estimated COMPLETION

NEWBUILDING REQUIREMENT

GAP

70

57

Shipbuilding Price EvolutionShipbuilding Price EvolutionMonthly Newbuilding Price Index

80

100

120

140

160

180

200

Jan-

00

May

-00

Sep-0

0

Jan-

01

May

-01

Sep-0

1

Jan-

02

May

-02

Sep-0

2

Jan-

03

May

-03

Sep-0

3

Jan-

04

May

-04

Sep-0

4

Jan-

05

May

-05

Sep-0

5

Jan-

06

May

-06

Sep-0

6

Jan-

07

May

-07

Sep-0

7

Jan-

08

May

-08

Ja

n 2

00

0=

10

0

in $ in € in Won in Yen in Yuan