Hyundai orders sink

Hyundai Heavy Industries said that its orders sank 57% in October from a year earlier on falling demand for new ships, reflecting a declining shipbuilding cycle. The orders received last month fell to $325 million from $758 million a year earlier. The company said it did not receive new orders for ships this month.

Contracts for marine engines plunged 99% to $2 million last month and those for construction equipment fell 35% to $169 million, while orders for offshore platforms more than doubled to $15 million. In the first 10 months of the year, HHI’s orders gained 20% to $26.1 billion.

In recent months new shipbuilding orders have virtually dried up as the global economy slides into its worst slump in years. Local banks are also reluctant to extend financing for orders. Earlier in the day, the Korea Shipbuilders’ Association asked banks to extend maturity of 3 trillion won worth of debts held by the local shipbuilders.