Hyundai Heavy Industries, the nation&rsquo s largest shipbuilder, reported a Q2 loss last week, citing soaring steel plate losses for its red ink performance, while Posco, South Korea&rsquo s top steel mill, registered an all-time record quarterly result.

According to Cleaves Securities, newbuild prices have risen by 12% year-to-date, the majority of the price increase down to higher steel prices. A VLCC newbuilding has increased by $12m in steel costs alone this year.

Yards aren&rsquo t necessarily in a better position as the slots fill up

Add in a weak dollar with negative real interest rates and prices look like they can only go upward

Mark Williams, who heads up British consultancy Shipping Strategy, argued that the shipbuilding sector is still in &ldquo defensive merger mode&rdquo and is yet to be convinced about growing capacity.

&ldquo Price pressures should continue to increase especially with new tech to meet emissions goals and the general increase in commodity prices. Add in a weak dollar with negative real interest rates and prices look like they can only go upward,&rdquo Williams suggested.