Dirk Weyrather: Prices may rise earlier than expected if Japan cuts scrap exports

At the SteelOrbis Spring '11 Conference & 64rd IREPAS Meeting held in Hong Kong on April 11-12, Dirk Weyrather, the managing director of Coutinho & Ferrostaal GmbH, told SteelOrbis that the earthquake in Japan has not yet influenced the long steel market, since Japan is not a key player in the market in question.
 
However, Mr. Weyrather went on to say that, the resulting period of reconstruction, whenever it starts, will increase Japan's demand for construction steel, including rebar. Steel producers in South Korea, China and in Taiwan are hoping to benefit from this anticipated increase in demand, Mr. Weyrather stated, though adding that prices have not been impacted so far.
 
Assessing the immediate influence of the Japanese earthquake, Weyrather said, "In the short term, Japan does not seem to be in a good position to export scrap. And if Japan cuts its scrap exports, Southeast Asian mills will have to switch to other sources. So prices would see an upswing earlier than expected, in four to six weeks' time. However, the situation remains highly unpredictable for now."