Shipyards in South Korea, the world's biggest shipbuilding nation, are working to complete record orders won at higher prices with deliveries stretching into 2012. Future earnings will be boosted by softening material costs as the global financial crisis weakens demand for steel.
“The average price of vessels that are being built will increase as shipyards build more vessels bearing higher margins,'' said Lee Jae Kyu, an analyst at Mirae Asset Securities Co. in Seoul. “Earnings will be better from the fourth quarter as material costs fall.''