Some high-end Chinese exports of steel products is expected to increase; post-disaster reconstruction in China’s steel production and construction-based companies also have huge demand.

March 11, off the coast of the east coast of Japan, 9.0 earthquake, Japan, five steel production base in Tokyo Bay enterprises face shutdown. For Japan’s neighbors in the Chinese steel industry, to a certain extent, improve the operating conditions of the Chinese steel industry.

According to the Japanese steel companies to disclose information indicating that the earthquake directly affected the three major steel mills in Japan about 26 million tons of crude steel production capacity. “From the product structure, iron and steel enterprises in the affected areas mainly in the production of sheet metal and tube-based, such as JFE Chiba factory mainly produces stainless steel and tin substrates.” Joint metals analyst briefing, the board is the main varieties of Japanese exports .

Japan due to the earthquake in exports, the country imported from Japan before the turn it will purchase steel country, so some Chinese products such as hot-rolled steel in the end, the board is expected to increase exports.

Beijing steel joint consultation in an interview that Japan’s post-disaster reconstruction in China’s steel industry, especially steel production and construction-type companies will bring tremendous demand. In the long run, due to need for reconstruction after the earthquake in Japan, requires a lot of construction steel. Species in the Japanese steel, construction steel, only 30% of the species.

Golden State Securities analysts believe that Japan’s crude steel, automobile production to bring supply and demand to reduce the gap most likely to be Korea, China to fill, “If all the Chinese filled, will enhance China’s crude steel capacity utilization by 2.9 percentage points.”

Guoxin Securities analyst in the research report pointed out that China’s steel industry, the Japanese steel industry, mainly in the production of high-end steel products, such as silicon steel sheet, plate and other high-end cars. Japan earthquake will directly affect the export of high-end steel products, which will end plate of Chinese enterprises producing good form. “Such as Baosteel and Wuhan Iron and Steel.”

Reduction in the steel production in Japan will inevitably reduce the demand for iron ore. By the earthquake on news of the day March 11 the London Clearing House in April of iron ore swaps prices fell 4.15%, for the biggest decline since 2011.

“Japan is the world’s largest iron ore importer, 2-3, iron ore imports in 2010 accounted for the global iron ore seaborne trade of 12.78%. If 25% of Japan’s crude steel production be affected, will further the global Partial cooling hot iron ore market. “Wang Zhaohua think.

However, Guoxin Securities believes that the farther point of view, the reconstruction will inevitably bring about the growth in steel demand, increasing demand for iron ore, iron ore prices will push forward.

Japan’s output of iron and steel industry ranks second in the world crude steel production in 2010 was 1.09 million tons, second only to China. Japan’s Nippon Steel, JFE, Sumitomo Metal, Tokyo Steel, Kobe Steel’s crude steel production accounts for the five Japanese steel crude steel production of 75% -80%, the five largest steel production base of dozens of mainly located in Tokyo Bay, Fukuoka, Osaka Bay and the Gulf and other areas in central and southern Kanto region.

Japanese steel exports in 2010 43.4 million tons, accounting for 45% of its production for the world’s largest exporter of steel, its main export varieties of hot rolled, galvanized sheet, cold roll, plate, pipe, electrical steel and stainless steel, the steel used in cars, appliances and shipbuilding industries.