Quake to Soften Global Iron Ore Prices

Baosteel said the earthquake in Japan could cause local steelmakers to reduce consumption of iron ore, thus easing tension on the global supply of iron ore to some extent Major steelmakers including Nippon Steel and JFE Holdings have halted their production facilities along the eastern cost of Japan. Some worst-hit plants won't likely resume operations for at least six months. The impact on the domestic steel market has so far been limited as the trade volumes of steel between the two countries are not large. But China may see a surge in exports when the post-quake recovery and reconstruction begins in Japan.