Shipbuilding could be challenging beyond 2012:DBS

Weakness in the Baltic Exchange Dry Index is expected to result in a slow down in order flows.

In a statement, DBS said, margin compression could arise from fluctuations in RMB/USD and steel costs.

While acknowledging the risks, DBS is not overly pessimistic. Mitigating factors include a potential rebound in newbuild prices, USD appreciation and slower steel price hikes.

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