TOKYO—Mitsubishi Heavy Industries Ltd. and other Japanese shipyards will seek to delay an increase in steel prices in order to protect profits already under-pressure from cheaper rivals in China.

“We hope steelmakers will understand that our industry finds it difficult to pass on the increase in costs,” Masamoto Tazaki, chairman of the Shipbuilders’ Association of Japan, said Tuesday at a news conference in Tokyo.

Yards in Japan, the world’s third-biggest shipbuilding nation by orders, face higher costs after Asia’s three-largest steelmakers agreed Monday to pay Cia. Vale do Rio Doce at least 65 percent more for iron ore in the year starting April 1.

Nippon Steel Corp., the world’s second-biggest steelmaker, is seeking to increase domestic contract prices by ¥20,000 ($186) a metric ton for sheets and plates for the year starting April 1, company officials, who asked not to be identified, said on February 12. Prices this year ranged between about ¥50,000 and ¥75,000, they said.

Shipbuilding units of Mitsubishi Heavy, Mitsui Engineering & Shipbuilding Co. and Kawasaki Heavy Industries Ltd. returned to profit in the nine months ended December 31 as ship prices rebounded.

Japan’s yards extended market share losses in 2007 as rivals in South Korea and China expanded capacity to snare orders from local and overseas customers, the association said Tuesday.

The market share of Japanese shipbuilders dropped to 12 percent in 2007 from 19 percent a year earlier, the 20-member industry group said in a statement, citing Lloyd’s World Shipbuilding Statistics. Orders for new ships fell 15 percent from a year earlier to 10.12 million compensated gross tons.

Orders at shipyards in South Korea climbed by half to 32.97 million compensated gross tons in 2007, expanding their share to 38.6 percent. Chinese yards boosted orders 83 percent to 28.92 million tons in the period, with a 34-percent market share, the association said, citing Lloyd’s.

Compensated gross tons are an industry measure of ship sizes, as well as the time and materials used in production. (Bloomberg)

Firm sells old ship to improve its efficiency

PUBLICLY listed Lorenzo Shipping Corp. announced the sale of MV Lorcon Mindanao, a 36-year old vessel that can carry 400 metal containers, to Coral Bay Maritime Inc. Nevis.

THE Philippines will have to overhaul a 30-year old law which measures the amount of taxes levied on goods if the Senate decides to ratify an international treaty which will upgrade Customs procedures.

TOKYO—Nippon Yusen K.K., Japan’s largest shipping line by sales, forecasts- pretax profit will increase by about 13 percent next fiscal year as it earns more from container shipments and narrows losses at its air-cargo business.

SINGAPORE—Scrapping of aging ships that carry coal, iron ore and other commodities may rise because of an increase in new vessel deliveries starting this year, Thailand’s Precious Shipping Pcl. said in its annual review.

TOKYO—Mitsubishi Heavy Industries Ltd. and other Japanese shipyards will seek to delay an increase in steel prices in order to protect profits already under-pressure from cheaper rivals in China.