[Edaily Reporter Park Soon-yeop] Analysis suggests that while shipbuilding stocks have undergone a significant correction since May, the actual state of the shipbuilding industry has actually strengthened. Although stock prices have been weak due to market attention shifting toward artificial intelligence (AI)-related stocks, combined with foreign selling and profit-taking by existing leading stocks, new ship prices and order trends are assessed to be far from indicating a slowdown in the industry.
Choi Gwang-sik, an analyst at Daol Investment & Securities, stated in a report on the 16th, “Regardless of the weakness in shipbuilding stocks in May, the shipbuilding industry has shown strength,” adding, “The gap between industry conditions and stock prices has begun to narrow.” He maintained an “Overweight” investment rating for the shipbuilding sector.

Researcher Choi first focused on the trend in ship prices. The new ship price index has continued its upward trend since the end of April, rising to around 185 points. The report explained that after rising for nine consecutive weeks through the end of May, prices fell slightly in June, but no clear downward trend was observed across vessel types. In particular, it noted that as used tanker prices have risen to levels that exceed or threaten newbuilding prices, a typical upcycle pattern is emerging, driving new orders and higher ship prices.
Order intake has also been strong. For LNG carriers, Korean shipbuilders secured 36 orders cumulatively this year, including seven vessels contracted in a single week in mid-May. This is close to last year’s annual total of 38 vessels. While newbuild prices for LNG carriers remain somewhat disappointing at around $250 million to $254 million, the medium- to long-term order pipeline is expanding as major projects such as Commonwealth LNG, the Cheniere Sabine Pass expansion, Shell LNG Canada Phase 2, and Alaska LNG continue to progress.
The most significant changes are occurring in the gas carrier sector. #HD Hyundai Heavy Industries has secured consecutive orders for VLGCs since May from KSS Shipping, TMS Cardiff, BW LPG, and BGN, while HD Hyundai Samho has also secured orders for six VLACs from Cheniere. #Hanwha Ocean and #Samsung Heavy Industries have also secured contracts for VLACs and VLGCs, respectively. Analyst Choi noted, “VLGCs and VLACs are high-value-added vessel types on par with LNG carriers,” adding, “They are filling the 2028–2030 delivery slots with high-margin orders.”
The tanker market is also strong. Following its order for four VLCCs from Pan Ocean, Hanwha Ocean secured an additional VLCC order from DHT Holdings for delivery in 2028 at a favorable price. #Daewoo Shipbuilding & Marine Engineering also set a new record by securing an order for a Suezmax tanker worth $94 million. Prices for used VLCCs have risen to $145 million, and those for Suezmaxes to $104 million, with used ship prices driving the rise in newbuilding prices.
The FLNG market is also assessed to have moved beyond its nascent stage and entered a phase of expansion. Samsung Heavy Industries secured contracts for the first Delfin FLNG unit and the remaining portion of the Coral Norte project, fulfilling two of its four FLNG order targets for this year. Delfin is pushing for a Final Investment Decision (FID) on Units 2 and 3 within the year, and projects such as Canada’s Western LNG, follow-on projects for Mozambique’s Coral, and Argentina’s LNG are also being discussed as potential pipeline projects.
Of course, there are also headwinds. The expansion of LNG carrier orders by Chinese shipbuilders and stagnant newbuilding prices for LNG carriers are cited as burdens for the Korean shipbuilding industry. The fact that China’s penetration into high-value-added vessel types is gaining momentum, as evidenced by Zhanjiang Shipbuilding and Hudong-Zhonghua increasing their LNG carrier orders, is a point that warrants vigilance in the medium to long term.
However, Analyst Choi judged that it is difficult to view China’s expanding order intake as a sign that the shipbuilding industry has peaked. This is because the global newbuilding market itself is growing, and Korean shipbuilders still maintain competitiveness in securing orders for high-specification, high-reliability vessels.
He also saw significant potential for a future stock price rebound. Analyst Choi noted that fundamentals actually improved during the May downturn in shipbuilding stocks, and the recent rebound reflects this trend. In particular, he believes there is a high likelihood that the strong order intake, centered on gas carriers, and rising ship prices will be reflected in stock prices by the end of July’s earnings season.
Analyst Choi stated, “The shipbuilding industry is filling its order books for 2028–2030 with high-priced, high-margin vessels such as LNG carriers, VLGCs, VLACs, tankers, and FLNGs,” adding, “The May stock price decline occurred during a period when there was a significant disconnect from the robust market conditions.” He added, “If this aligns with new developments such as follow-on supply for U.S. data centers, the MASGA and CPSP projects, and the emergence of the floating data center (FDC) market, the rebound in shipbuilding stocks could become even stronger.”