Since this year, the price of bulk commodities fluctuates greatly, which has a great impact on the smooth operation of the steel and shipbuilding industry. The "roller coaster" of steel prices has increased the shipbuilding industry's risks sharply.
 
On September 23, China Iron and Steel Association and China Association of the National Shipbuilding Industry formally signed a strategic cooperation agreement, forming a long-term and stable cooperative relationship and achieve mutual benefit and win-win results.
 
At the meeting, 10 major shipyards, including the three central shipbuilding enterprises, signed long-term purchase agreements with more than a dozen domestic steel enterprises for marine steel plates.
 
Since the beginning of this year, the steel market has shown great ups and downs, which is not conducive to the stable production and operation of the steel industry. The steel market is greatly affected by the raw fuel market, especially iron ore supply has been a major pain point in the steel industry.

The shipbuilding industry is a long-cycle industry, the ship contract from effective to procurement, construction, delivery cycle is long, steel market fluctuations, is not conducive to the development of shipbuilding industry. Since the fourth quarter of last year, the price of ship board continued to rise, shipbuilding industry cost pressure is huge.
 
Shi Yugao, deputy general manager of CSSC Equipment and Materials, said strategic procurement is conducive to value creation in the supply chain, helping to reduce the overall cost of ship companies and build a stable and competitive supply chain.
 
Source: Sarah Yu, XINDE MARINE NEWS

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