Nuclear fears shut 25 embassies in Tokyo

March 23, 2011 8:47PM

THE nuclear emergency following the earthquake and tsunami in Japan has led 25 embassies to temporarily shut their doors in Tokyo, Foreign Minister Takeaki Matsumoto said today.

As of yesterday; "eight of them had transferred their functions outside Tokyo or Japan", Matsumoto told AFP by email.

"The rest have had their staff stay home. They have been changing its working arrangement day by day," he said.

"At any rate, the Ministry of Foreign Affairs keeps in touch with the embassies temporarily transferred or embassy staff staying home, providing accurate information to the entire diplomatic corps."

Nearly two weeks after the double disaster ravaged the country's Pacific coast on March 11, workers were battling to avert catastrophe at a crippled nuclear power plant, located 250 kilometres northeast of Tokyo.

The foreign ministry's press division said the following countries had closed their doors: Angola, Bahrain, Benin, Botswana, Burkina Faso, Croatia, Dominican Republic, Ecuador, Finland, Germany, Ghana, Guatemala, Kenya, Kosovo, Lesotho, Liberia, Libya, Malawi, Mauritania, Mozambique, Namibia, Nepal, Nigeria, Panama and Switzerland.

The US State Department last week authorised the "voluntary departure" of embassy family members in Tokyo, including relocation to other areas within Japan.

U.S. halts Japan food imports, Tokyo water contaminated

Wed Mar 23, 2011 6:41am GMT

* U.S. to block milk, fruit, vegetable imports
* Radiation dangerous for infants in Tokyo water
* Engineers battling to stabilise Fukushima reactors
* Earthquake, tsunami left nearly 23,000 dead or missing

By Mayumi Negishi and Kazunori Takada

TOKYO, March 23 (Reuters) - Radiation danger from Japan's tsunami-smashed nuclear plant loomed on Wednesday with water in Tokyo showing hazardous levels for infants and the United States becoming the first nation to block food imports.

Tokyo authorities said water at a purification plant for the capital of 13 million people had 210 becquerels of radioactive iodine -- more than twice the safety level for infants.

"This is without doubt, an effect of the Fukushima Daiichi plant," a Tokyo metropolitan government official said, in reference to the damaged nuclear plant 250 km (150 miles) north of the city.

Tokyo governor Shintaro Ishihara, however, said the radiation level posed no immediate health risk and water could still be used.

"But for infants under age one, I would like them to refrain from using tap water to dilute baby formula," he said.

Crystallising international concern, the U.S. Food and Drug Administration said it was stopping imports of milk, vegetable and fruit from four prefectures in Japan's crisis-hit northeast.

South Korea may be next to ban Japanese food after the world's worst atomic crisis since Chernobyl in 1986. France this week asked the European Commission to look into harmonising controls on radioactivity in imports from Japan.

At the six-reactor Fukushima plant, crippled by a March 11 earthquake and tsunami, engineers are battling to cool reactors to contain further contamination and avert a meltdown.

In a rapidly widening problem, Japan said on Wednesday above-safety radiation levels had been discovered in 11 types of vegetables from the area, in addition to milk and water.

Officials still insisted, however, that there was no major danger to humans and urged the world not to over react.

"We will explain to countries the facts and we hope they will take logical measures based on them," Japan's chief cabinet secretary Yukio Edano, who has been the government's public face during the disaster, told a news conference.

The Asian nation's worst crisis since World War Two may have caused $300 billion damage, sent shock waves through global financial markets, and left nearly 23,000 people dead or missing, mostly from flattened coastal towns.

More than a quarter of a million people are living in shelters, while rescuers and sniffer dogs comb debris and mud looking for corpses and personal mementoes.

Worsened by widespread ignorance of the technicalities of radiation, public concern is rising around the world and radioactive particles have been found as far away as Iceland.

Japan has already halted shipment of some food from the area and told people there to stop eating leafy vegetables.

Asian neighbours are inspecting imports for contamination, and Taiwan advised boats to stop fishing in Japanese waters.

Although there has been progress in restoring power to the Fukushima site 13 days after the accident, plant operator Tokyo Electric Power Co (TEPCO) said it needed more time before it could say the reactors were stabilised.

DRAMA AT FUKUSHIMA

Technicians working inside an evacuation zone around the plant have successfully attached power cables to all six reactors and started a pump at one to cool overheating nuclear fuel rods.

Concern is high over reactor No. 1 after its temperature rose to near 400 degrees Celsius, above a design limit of 302.

As well as having its workers on the front line in highly dangerous circumstances, TEPCO is also facing accusations of a slow disaster response and questions over why it originally stored more uranium at the plant than it was designed to hold.

Vienna-based U.N. watchdog, the International Atomic Energy Agency (IAEA), expressed concern about a lack of information from Japanese authorities. It cited missing data on temperatures of spent fuel pools at the facility's reactors 1, 3 and 4.

"We continue to see radiation coming from the site ... and the question is where exactly is that coming from?" said a senior IAEA official, James Lyons.

U.S. Defense Secretary Robert Gates said he was concerned about radioactive fallout affecting the U.S. 55,000 troops in and around Japan, many involved in a massive relief operation for Washington's close ally. "We're also deeply concerned about the wellbeing of our Japanese allies," he said.

Experts said tiny traces of radioactive particles, measured by a network of monitoring stations as they spread eastwards from Japan across the Pacific, North America, the Atlantic and to Europe, were far too low to cause any harm to humans.

"It's only a matter of days before it disperses in the entire northern hemisphere," said Andreas Stohl, a senior scientist at the Norwegian Institute for Air Research
GLOBAL IMPACT

The Japan crisis has dealt a blow to the nuclear power industry around the world. Italy became the latest nation to re-assess its programme, announcing a one-year moratorium on site selection and building of plants.

Crisis in the world's third-biggest economy -- and its key position in global supply chains, especially for the auto and technology sectors -- has added to global market jitters, also affected by conflict in Libya and unrest in the Middle East.

Asian shares fell on Wednesday, with Tokyo's Nikkei shedding more than 1 percent as investors took profits from a two-session bounce. Japanese stocks are about 8 percent below their close on the day the 9.0 magnitude earthquake struck.

Toyota said it would delay the launch in Japan of two additions to the Prius line-up, a wagon and a minivan, from the originally planned end-April due to production disruptions.

The tsunami and earthquake are the world's costliest ever natural disaster, with the government estimating damage at 15-25 trillion yen ($185 billion-$308 billion.

The upper end of that range would equate to about 6 percent of Japan's gross domestic product.

The official death toll has risen to 9,199, but with 13,786 people still reported missing, it is certain to rise.

There are reports dozens of survivors, mostly elderly, have died in hospitals and evacuation centres due to a lack of proper treatment, or simply because of the cold. It is winter in Japan.

At one sports arena in Minamisanriku where 1,500 evacuees are staying, old people crowded at a counter stacked with pills and bandages, while about 30 people slept on beds or on the floor in a makeshift clinic with doctors on standby.

"It's less a problem of medical supplies now, but a problem of finding out what medicine is lacking where and centralising that information," said Nobuyuki Maki, a doctor.

"Many places in this area haven't restored mobile phone connections yet so there are still problems with communication."

Implications of the Japan Crisis on steel, coal, shipping industry

Mar16, 2011

In the aftermath of the devastating earthquake that has hit Japan, fears are growing over the potential for radiation leaks from damaged nuclear plants. Equity markets have been hit while FFA prices have also sustained significant losses. With the situation still unfolding, the longer term impact of the disaster on commodity markets is unclear, although some initial conclusions can be drawn.

In the short term, shipping has been disrupted with 13 ports reported by Reuters to have closed, with some of these unlikely to be operational for several months or even years. Initial assessments by Macquarie and the Steel Index put production at five large steel mills in the worst-affected region at risk, accounting for 15-18 million tonnes (Mt) of annualized steel production capacity. That could potentially remove around 20-25 Mt of iron ore and 9-10 Mt of coking coal demand.

In the longer term, reconstruction should boost demand for steel with potential for significant increases in raw material imports. Whether the additional steel demand is met entirely by Japanese production or partially by China, Korea and/or Taiwan, the overall effect should be a boost to iron ore and coking coal imports into the region. Capesize vessel demand would therefore be the biggest beneficiary, with the Panamax sector boosted by extra coking coal demand alongside additional Handysize and Supramax employment on steel products, timber and grain trades. Should additional cargoes be required into China, this would entail more spot market chartering activity, in contrast to Japan’s traditional reliance on longer term freight contracts.

Meanwhile the nuclear crisis has led to rolling blackouts. Out of Japan’s 54 nuclear reactors, 11 are reported closed. The Fukushima Daiichi nuclear plant has so far suffered explosions at three of its reactors and it will almost certainly be decommissioned once the crisis is over. Japan depends on nuclear power for almost a third of its total energy needs. Recent parallels can be drawn with the closure of the Kashiwazaki-Kariwa nuclear plant for 21 months after the 2007 earthquake in Niigata prefecture and, perhaps more significantly, the temporary shutdown in 2003 of 17 nuclear power stations for emergency safety inspections after it was revealed that inspection reports had been falsified.

The 2003 closures led to an increased reliance on both oil and coal-fired power generation. There was an unexpected spike in Japan’s steam coal imports (including anthracite) in July and August 2003 to more than 15 Mt per month compared to an average of 14 Mt per month during the 1h03. This was a key factor in causing the chronic shortage of dry bulk tonnage at that time that led to the record-breaking surge in freight rates.

The rolling programme of emergency inspections in the months that followed led to a very gradual reopening of nuclear plants, which helped to ensure that Japan’s steam coal demand grew strongly. Combined steam coal and anthracite imports jumped from 112.0 Mt in 2003 to 123.6 Mt in 2004. Improved economic conditions in 2010 resulted in the annual import total rising by 14.1 Mt over 2009 to 131.2 Mt. Beyond the inevitable short-term disruptions, there is potential for further strong rises in steam coal demand. This could be particularly significant in the longer term if the latest tragic developments cause a rethink in Japan of the viability of nuclear generation as a key part of the country’s energy mix. (By Marinelink)

Global supply chain rattled by Japan quake, tsunami

Mon Mar 14, 2011 8:55am GMT

* High tech components, steelmakers among suppliers affected
* Rolling power blackouts likely to disrupt output for some time
* Some producers talking to alternative suppliers
* Shares of Toyota, Sony fall more than 7 pct

By Miyoung Kim and Clare Jim

SEOUL/TAIPEI, March 14 (Reuters) - Global companies from semiconductor makers to shipbuilders faced disruptions to operations after the earthquake and tsunami in Japan destroyed vital infrastructure and knocked out factories supplying everything from high-tech components to steel.

Thousands of people have been killed and millions have been left without water, electricity, homes or heat after Friday's 8.9 magnitude quake triggered a massive tsunami which tore across a wide swathe of coastline north of Tokyo.

The earthquake has forced many firms to suspend production and shares in some of Japan's biggest companies tumbled on Monday, with Toyota Corp and Sony Corp falling 8 percent and 9 percent, respectively.

Plant closures and production outages from Japan's host of high-tech companies were among the biggest threats to the global supply chain, analysts said.

"Japan remains critical to the global tech food chain," analysts at CLSA said in a report. "Beyond damage to facilities, supply chain disruptions driven by road-port-power outages are key factors to watch," CLSA said, estimating a fifth of all global technology products are made in Japan.

Korean shipbuilders and U.S. solar power companies were among other companies facing the threat of disruptions to supply, but with initial damage assessments still being made, companies and analysts said it was too early to accurately gauge how long disruptions might last.

Rolling power blackouts are likely to affect Tokyo and surrounding areas over the next few weeks, adding to the existing challenge of inspecting and repairing north Japan plants amid continuing aftershocks and the threat of major radiation leaks from damaged nuclear power plants.

KOREAN COMPANIES HIT

Japanese ports handling as much as 7 percent of the country's industrial output sustained major damage from the earthquake, with most seen out of operation for months.

Companies in neighbouring South Korea, which depend heavily on Japan supplies such as LCD glass, chip equipment, silicon wafers and other products to produce semiconductors, were some of the most affected.

Hynix Semiconductor , the world's No.2 memory chipmaker and a rival of Japan's quake-hit Toshiba Corp and Elpida Memory , said it was concerned the quake may weaken consumer demand further and disrupt supplies of chip components.

"It could give a boost to battered chip prices but that's a short-term impact from disrupted supplies by Japanese companies," said Kim Min-chul, chief financial officer at Hynix. "Longer-term we are more concerned about the quake reducing overall consumer demand and disrupting supplies of chip components and equipment, which could interrupt our production as well."

Hynix shares surged almost 9 percent on expectations of a short-term boost to chip prices and reduced competition, while shares in Toshiba, a conglomerate whose products include semiconductors and nuclear reactors, dived 16 percent.

Toshiba, which supplies more than a third of the NAND memory chips used worldwide in devices such as Apple's hot-selling iPad, said it was starting the process of restarting a chip factory in Iwate, northern Japan.

Shares of Shin-Etsu fell 6.7 percent in Tokyo, while rival silicon wafter makers Sumco Corp ended flat in a Tokyo market that closed down 6.2 percent.

Spot prices for DRAM chips, mostly used in personal computers (PC), had started rising in China, chip price tracker DRAMExChange said.

"Especially for PC and system manufactures, they need to be more proactive in DRAM inventory for the upcoming peak season," it said in a note.

Nokia , the world's largest mobile phone maker, said it was investigating the impact on supplies.

About 12 percent of components used by Nokia were sourced in Japanese yen but the amount of Japanese components was likely larger in its phones as Nokia has recently renegotiated its supplier contracts in Japan to cut risks from swings in the value of the yen.

"Until we have concrete information to share, it would be inappropriate to speculate on the possible impact to Nokia," a spokesman said.

STEEL, SOLAR

Companies reliant on Japanese steel such as South Korean shipbuilders were also expected to face supply constraints or higher prices due to disruptions caused by the quake and its aftermath.

South Korea houses the world's top three shipbuilders -- Hyundai Heavy Industries , Daewoo Shipbuilding and Marine and Samsung Heavy Industries .

"The earthquake has reportedly affected around 20 percent of the Japanese steel production capacity," said Kim Hyun-tae, an analyst at Hyundai Securities in Seoul. "It will disrupt production in Japan, one of the major steel producers exporting 40 percent of its output. In contrast, steel demand will rise for damage restoration."

Nippon Steel Corp , the world's No.4 steelmaker, said on Sunday it resumed shipments from all its steel plants except its Kaimishi facility in northern Japan. Rival JFE Holdings said on Monday it was forced to stop shipments at one plant near Tokyo due to a power outage.

On Monday, JFE Steel Corp , the world's No.5 steelmaker, halted production at a plant near Tokyo and No.4-ranked Nippon Steel suspended operations at two small plants.

"If there is a 10 percent rise in steel plates, it can result in a 1.5 percent fall in the operating profit margin for shipbuilders," said SK Securities analyst Lee Ji-hoon, adding roughly 15 percent of steel plate supplies for Korean shipbuilders come from Japan.

Korean steel maker POSCO was expected to benefit from tighter supplies and pressure on prices. Its shares rose almost 9 percent in Seoul.

The earthquake also raised risks of lower production from Japanese manufacturers of polysilicon and wafers -- materials found in solar panels that convert sunlight into electricity.

Credit Suisse expects supply problems at solar wafer maker M. Setek Co, a unit of AU Optronics , whose plant is situated near Sendai town, close to the epicenter of the quake.

US solar panel maker SunPower Corp could be vulnerable to wafer supply disruption as it relies on M. Setek for up to 20 percent of its supplies or about 200 megawatts, Credit Suisse said.

An AU spokesman said initial assessment at the M. Setek plant showed no major damage but it was unclear when production would resume.

Taiwan's TSMC , the world's largest contract maker of semiconductors, said there was no immediate threat to supplies.

"For raw materials like raw wafers, gases and chemicals and spare parts, we have enough inventories to keep things running for at least 30 days," said TSMC spokesman Michael Kramer.

Other high tech producers including Taiwanese smartphone make HTC said operations and components supply had not been affected but they would be talking to alternative suppliers and monitoring the situation in Japan. (Additional reporting by Hyunjoo Jin and Ju-min Park in SEOUL, Tarmo Virki in HELSINKI and Leonora Walet in HONG KONG; Writing by Lincoln Feast; Editing by Anshuman Daga and Dean Yates, sourced Reuters)

Tags :Korean companies hit, Toshiba, Hynix, chipmaker, Sumco Corp, Nippon Steel, JFE, POSCO, Credit Suisse,