China's shipbuilding capacity utilization retreats in Q1

China's shipbuilding capacity utilization retreated in the first quarter of 2019 due to a sluggish global market, data from China Association of the National Shipbuilding Industry (CANSI) showed.

In the first three months, CCI, a monitoring index which indicates China's shipbuilding capacity utilization efficiency, came in at 590 points, down 5.8% from the same period last year.

The index also fell from the 607-point reading in the fourth quarter of 2018.

The CANSI attributed the drop to downcast sentiment in the global shipping market, with a notable fall in business orders.

On the outlook for the Q2, the association expects a slight pick-up in new orders, but shipbuilders will continue to face pressures from sagging demand and rising costs.

Earlier data showed Chinese companies built 43.2% of the new ships in the world in 2018, up from 41.9% a year ago, cementing the country's leading role in the sector.

China received 43.9% of global new orders last year and held 42.8% of the existing orders, data from the CANSI showed.