The impact of steel prices on offshore containers is mainly reflected in two aspects: cost and profit.

The Impact of Steel Prices on the Cost of Offshore Containers
The proportion of steel cost in shipbuilding usually ranges from 20% to 30%. The specific proportion may vary depending on factors such as ship type, ship scale, and fluctuations in the market steel prices. For example, for small ships or special ships with less steel consumption, the proportion of steel cost may be close to 20%; while for large bulk carriers, oil tankers, container ships and other ships with large steel consumption, the proportion of steel cost may be close to 30%. If steel prices rise significantly after the signing of a shipbuilding contract, the proportion of steel cost may be even higher, thus greatly squeezing the profit margin of shipyards.

The Impact of Steel Prices on the Profit of Offshore Containers
The decline in steel prices has a significant impact on the profit of offshore containers. Assuming that other conditions remain unchanged, a 10% drop in steel prices can bring about an increase in the gross profit margin of approximately 3.2%. If steel prices decline by about 25%, the room for improvement in the gross profit margin will be even more significant. In addition, fluctuations in shipping prices also affect the profit of offshore containers. A loosening at high levels of shipping prices will lead to a decline in ocean freight, which in turn affects the short-term profit of the shipbuilding industry. For example, the Shanghai Containerized Freight Index for exports has fallen by nearly 20%, and the freight rate has dropped below the 10,000-dollar mark, which has had a significant impact on the demand for shipping and the supply and demand relationship in the shipping market.