Inflation being reported around the world is set to have a large impact on newbuild prices as shipyards factor in soaring costs for steel.

A chart prepared by Evercore ISI (see below) comparing the price of Chinese rebar prices and newbuild price developments for VLCCs, capesizes and large containerships shows that while there is a correlation, the magnitude of vessel values lags.

“Inflation in newbuild prices almost always translates to rising secondhand asset prices, which push up net...