A strong 6.7 magnitude earthquake in the Sea of Japan near the coast of Niigata prefecture that triggered a tsunami warning late Tuesday has had no immediate impact on the region's steel sector, company officials said Wednesday.
The region on Japan's northwest coast is home to several mills producing steel products primarily for the domestic market, with some exports via Niigata and Naoetsu ports.
A Nippon Steel spokeswoman said the company's Naoetsu plant in Niigata, which produces stainless and titan products, had sustained no damage. "We confirm there was no interruption from the earthquake, so operations at Niigata and its sales branch will be normal," she said.
An official at rebar, wire rod and section producer Hokuetsu Metal said operations at its two production sites at Nagaoka and Sanjyo had also not been impacted.
A sales official at stainless service center Myodo Metal also said the company was operating normally Wednesday and there had been no power outage due to the earthquake.
A official at rebar producer Mitsuboshi Metal said the company's electric furnace was not operating when the earthquake occurred and it has since conducted safety checks and confirmed it can operate and deliver products normally. "Japan's Meteorological Agency has warned of the possibility of similar-sized aftershocks in the same area, so we will have to be prepared for that, just in case," he said.
A Tokyo-based trader said he had yet to hear of any damage to steel production plants but disruptions to transport logistics may emerge. "We believe there may be some impact on transport logistics, but not great," he said.
Tohoku Electric Power Co., which supplies power in the prefecture, has announced that all service disruptions due to the earthquake had been resolved by early Wednesday.
Source: S&P Global