Operations in Nippon Steel Corporation’s Kamaishi plant in North Japan remain closed today after the earthquake and tsunami damaged equipment.
Though production in the rest of the country has resumed, power disruptions are also likely to affect steel production in the near future. 15 – 18 million tons of steel production could be affected by the disaster, according to Platts.
Korean, Taiwanese and Chinese steel companies are expected to benefit in the near-term from the Japanese slowdown, according to a report from Bank of America.
From Bank of America:
Regional market may see a drawback of Japanese steel exports in next few months on suspension of Japanese steel capacity and damages at roads and ports. It is positive for Chinese, Korean and Taiwan steel exporters, who have been Japan’s major competitors in Asia Pacific.
South Korean companies saw their stocks rise:
- Dongkuk Steel Mill Co, Ltd up 12.86%
- Hyundai Steel Co. up 10.12%
- Pohang Iron and Steel Company (POSCO) up 4.92%
Steel companies in Taiwan gained:
- Feng Hsin Iron & Steel Co Ltd up 6.65%
And Chinese steel companies ended in the green as well:
- Angang Steel Co. up 4.84%
- Maanshan Iron & Steel Co Ltd. up 2.44%
- Baoshan Iron & Steel Co. up 1.98%
- Wuhan Iron & Steel Co. up 1.96%