It would be interesting to know how Japans stockpile of iron ore was impacted?
Was it washed away as it was near port or still intact?
Anyone have any idea of the proximity of ports/steel mills with regards to the impacted areas?
A massive rebuild, with much stronger construction will certainly occur.
Steel output which has been suspended will certainly need to be filled by mills in other countries (do they have the capacity to meet the extra demand?). Expect rolled steel prices to increase and may take iron ore (and coal)with it.
Nuclear power may fall out of favor in preference to more coal and more likely, gas.
Other Japan manufacturing will be impacted (TV etc) pushing up world prices overall, demand probably will be met by Korea.
we need to keep an eye on two key items here, first the reactor situation. This needs to stabilize.
Second, the Korean Peninsula. Any Sabre rattling by the north Koreans could impact South Korean stability which I believe would step in to fill any gaps in Japans manufacturing.
Regards
AGO Price at posting:
$3.41 Sentiment: LT Buy Disclosure: Held
