Ore price fell 14% Japan's five major steel companies are now shutting down Asian steel market affected

"At present, the employees of our company's Shanghai office and the family members are still good." On March 15, in an interview with this reporter, Nippon Steel Corporation (hereinafter referred to as "Nippon Steel") Shanghai The representative office represents the low level of Yoshikawa. "The earthquake and tsunami, such a serious disaster, we did not expect." As the representative of Japan's largest steel company in China, Yoshikawa is closely watching all the problems encountered by his home and business. . At present, Japan's five major steel companies have experienced different levels of production suspension, and the steel market in Northeast Asia and even in Asia is affected by the chain. The most iconic event is that the spot price of iron ore has fallen from a historical peak of $200/ton and fell by 14%. On the 15th, WISCO, Baosteel and other large domestic steel companies all told this reporter that they are assessing the impact of the Japanese earthquake on the Chinese and foreign steel markets in order to respond quickly to market changes. However, Li Xinchuang, dean of the China Metallurgical Industry Planning Institute and deputy secretary-general of the China Iron and Steel Industry Association, said: "Japan's current focus is on disaster relief. There is a time lag between the Japanese steel companies' disasters and the actual impact on the market. I will judge it later. I personally think that the impact will not be too great.” The five major steel companies are all damaged as the world’s second largest steel producer and one of the most important steel exporters after China. The Japanese steel industry is mainly along the Pacific Ocean. ( 11.86 , 0.00 , 0.00% ) The coastal layout is in a strip-shaped area formed by the five industrial zones of Keihin, Hanshin, Zhongjing, Seto Inland Sea and Kitakyushu. Among them, the crude steel output of the top five steel companies Nippon Steel, JFE, Sumitomo Metal, Tokyo Steel, and Kobe Steel accounted for 75% to 80% of Japan's total crude steel production. Five days after the earthquake, five major Japanese steel companies have been working hard to restore. On the 15th, Yoshikawa told the reporter: "As of today, we have a large impact on a factory in the northeast. Because of the inability to enter the factory, the safety of employees and their families is not clear, but other factories are not too Big problem.” He is referring to the Keshi long products factory in the northern part of Sendai City, which is the closest to the earthquake zone. It is understood that the plant has an annual production capacity of 600,000 tons of bar and wire. In this disaster, although the electric furnace and production line were not damaged, but the entire Kamaishi Port was destroyed by the tsunami, the terminal equipment has been flooded. The plant has all stopped production and it is expected that it will take a long time to rebuild and resume production. Nippon Steel's largest Junjin steel mill (annual crude steel output of 5.9 million tons) is located in the eastern part of Tokyo Bay. Three blast furnaces were closed from March 11 to 12 on the 12th day of the earthquake (suspended production). After a thorough inspection of the equipment and protection of the embankment, the blast furnace has been restarted on the 13th, and the rolling equipment has resumed operation. The Muroran Steel Plant, the Bagua Steel Plant and the Guangyu Steel Plant, both of which belong to Nippon Steel, are less affected. After the earthquake on the 11th, Sumitomo Metal's Kashima Steel Works, a fire in the coke oven gas equipment, was extinguished on the morning of the 12th. However, due to the location of the severely affected Ibaraki Prefecture, two blast furnaces have been in a state of rest after the earthquake. It is not known when the air is re-supplied. In addition, JFE's Gyeonggi Plant and Chiba Plant each had a blast furnace immediately after the 11th earthquake, and then began to supply air on the morning of the 13th and the morning of the 14th, but the production of hot metal will remain at the "lowest level"; The local steel mills resumed work, as well as the Japanese government’s power cuts. At present, all the gates of JFE's steel mills are temporarily in the "downtime check" state to meet the Japanese government's requirements for power cuts. The exaggerated influence is like the impact of the earthquake wave. After the Japanese steel industry is damaged, its influence has begun to spread to other countries, especially the market mentality. The first thing that fell back was the price of iron ore. On March 15, 63.5% of the external price of printing powder was 171-173 US dollars / ton, from the high record of 200 US dollars / ton quickly fell. In 2010, Japan imported 134 million tons of iron ore. Affected by the earthquake news, on March 11, the London Clearing House's iron ore swap contract price fell by 4.15% in April, the largest decline since 2011. "First of all, it should be verified whether the earthquake will bring a large-scale shutdown to Japanese steel companies, and what is the suspension cycle. These are still not certain." On the 15th, the information director of the Nishimoto Shinkansen, Sheng Zhicheng, told reporters: The hypothesis that the five steelworks in Tokyo Bay are suspended for six months is set up. Then, the international seaborne iron ore market may lose 22.2 million tons of iron ore demand. For miners, there are about 3.5 million tons per month. Iron ore sales are facing new choices. Compared with the global iron ore trading volume of nearly 1 billion tons per year, the influence of more than 20 million tons seems to be more psychological. However, considering that nearly 40% of Japan's steel is used for export, the earthquake will directly affect the Asian steel market. In January 2011, Japan exported 3.473 million tons of steel, 82% of which was in the Asian market. Among them, South Korea accounted for about 25%, China accounted for about 15%, and other Southeast Asian countries accounted for about 35%. On March 15th, a person in charge of WISCO International Trade Co., Ltd. said to the reporter that the earthquake is expected to have a greater impact on the output of the Japanese steel industry, and that the demand for steel in Japan will increase after the disaster. Japan’s steel exports will have a gap. The surplus capacity is about to be released. However, many Chinese and Japanese industry observers believe that the impact of the earthquake and post-disaster reconstruction on China's steel enterprises is limited. Lu Hui, the head of the second metal section of the China Metals Corporation of Sumitomo Corporation, told this reporter: "From the 13th, we obviously felt that the shipment and arrival of Japanese steel mills were affected because the shipping did not recover, but The situation is gradually recovering and improving, but it is not so scary. Compared with steel, the Japanese auto industry is more affected and may affect China's parts suppliers." "The earthquake will definitely cause some problems in the Japanese steel industry." The problem, but at the moment we feel that the impact will not be too great." Yoshikawa said. “The Japanese steel industry is not awkward, but some factories are experiencing difficulties. In fact, in the past two years, Japan has been deliberately controlling steel production capacity. In the future, Japan’s most unconstrained steel mills will be driven by reconstruction demand. The production capacity is completely released, allowing enterprises to increase production volume." Lu Hui analysis. In fact, the internal "filling" of Japanese steel has begun. Taking Nippon Steel as an example, in order to compensate for the capacity loss of the Kamaishi Steel Plant, it is preparing to increase the supply of steel for the post-disaster reconstruction by increasing the wire production at the Muroran and Junjin plants.  

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