Ship builders vulnerable to forex risk

The China Ship Industry Association (CSIA) announced that the country's ship building and export sector has grown more vulnerable to foreign exchange risk as the renminbi has appreciated against the dollar, Economic Obserber reported (in Chinese). The body estimated that each 1% appreciation of the RMB will result in a loss of US$264 million for the industry. Meanwhile, the pressures to lower prices have increased, as ship prices on the international market have been kept high for four years. The value of China's total ship exports reached US$5.5 billion in first half of the year, an increase of 61% over the same period last year, according to the CSIA.