Will the Kobe Steel Scandal Dent Japanese Ship Values?


Last week Kobe Steel, Japan’s third largest steel company, admitted that for maybe as long as a decade, its quality control executives deliberately faked strength and durability test data on some of its steel products. Test data given to around 500 customers, including Boeing and Hitachi, showed Kobe Steel products met their requirements, even though the products had actually failed tests, or had not even been tested. The mainstream press is mainly reporting on fake data given to Kobe Steel’s customers that manufacture planes, trains and cars, but Kobe Steel also supplies steel plate, welding wire, and main engine crankshafts to the shipbuilding industry. An internal investigation is underway, and so far Kobe Steel has not stated if any of its shipbuilding products were compromised by the fake data scandal (at least in the English-language press). Therefore, it is too early to mark down values on Japanese-built ships.

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About Craig Jallal
A shipping analyst whose feels the need to comment on the industry.

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