South Korean shipbuilders fell behind their Japanese rivals in winning new orders for the third time this year in September, disadvantaged by the weakening Japanese yen, an industry tally showed.

Chinese shipbuilders ranked No. 1 in September, followed by Japanese players and South Korean companies, according to data by global market researcher Clarkson Research Services.

South Korean shipbuilders lost to Japanese competitors in April and June this year as well.

Local shipbuilders obtained new orders totaling 421,528 compensated gross tons (CGTs) in September, securing 20.7 percent of the global market share. Chinese shipbuilders took 922,800 CGTs, or a 45 percent share, and Japanese shipbuilders won 551,850 CGTs, equal to 27.1 percent.

Market watchers said the increase for Japan is attributable to the narrowed gap between the prices of ships made by the firms of the three countries.

The Japanese yen has fallen against the U.S. dollar, lowering the price of the ships built by Japanese shipbuilders in recent months, while the Chinese yuan and the South Korean won have risen versus the dollar.

“South Korean shipbuilders will be hurt by the depreciation of the yen as their business portfolio overlaps that of Japanese rivals in the merchant ships and liquefied natural gas (LNG) carrier sectors,” a market watcher explained, speaking on condition of anonymity.

LNG carriers by Japanese shipbuilders pose an especially severe threat to Korean shipbuilders as their gas mileage is similar to those offered by Korean shipbuilding companies.

The recent merger among Japanese shipbuilders and the Japanese government’s financial support also contributed to the increased rise in new orders, market watchers said.

IHI Marine United Ltd. and Universal Shipbuilding merged early this year to form Japan Marine United Corp., now the world’s fourth-largest shipbuilder. MI LNG Co., a joint venture, was created by Mitsubishi Heavy Industries, Ltd. and Imabari Shipbuilding Co.

In an effort to revive its sluggish shipbuilding industry, the Japanese government decided to provide financial assistance of up to 80 percent of ship prices with a 1 percent interest rate.