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Commodities, energy markets grapple with shutdowns | Reuters
(Reuters) - Japan's earthquake forced port closures and shutdowns of oil refineries and metal plants in the world's third-biggest economy on Friday, rattling commodity and energy markets as participants weighed up how quickly activity could return to normal.
The magnitude 8.9 earthquake, the biggest to hit Japan in 140 years, struck the northeast coast, triggering a 10-meter tsunami that cleared everything in its path from houses to cars and set farm buildings on fire. At least 59 people have been killed.
"This natural disaster could result in another sharp rise in risk aversion on markets and a continuation of yesterday's correction on commodity markets," Commerzbank said in a report. "The demand for oil could be lower, at least temporarily, because of the earthquake."
ICE Brent crude oil fell more than 2 percent to around $113 a barrel, partly due to the earthquake.
Tokyo gold futures rallied about 0.4 percent soon after the quake, but has since turned lower by around 0.7 percent at 3,473 yen per gram. Tokyo rubber fell 3.6 percent to 384.1 yen.
Metals firm Mitsui Mining said operations at its Hachinohe zinc smelter, with a capacity of 112,000 tonnes a year, were halted by the earthquake, and employees evacuated.
All Japanese ports have closed, with discharging operations stopped, shippers said. Top refiner JX Nippon Oil & Energy Corp halted operations at three plants, while fire engulfed a storage tank at a unit of Cosmo Oil Co. The two make up about 20 percent of the country's total refining capacity.
"It's a big mess. All discharge operations are suspended in the area," said one shipbroker.
TV footage showed several ships damaged by the tsunami including a large panamax vessel, which typically could carry up to 80,000 tonnes of coal, iron ore or grain, a second Tokyo-based shipbroker said.
A ship carrying 100 people was also swept away, the Kyodo news agency reported.
"Most or all coal stocks will be washed out at many of the coal-fired power plants," he said. "Ports will be closed at least for a short period until damage assessments can take place."
Around 4.4 million homes were without power in northern Japan, media said.
Hokuriku Electric Co said all three reactors at its Onagawa nuclear plant in northern Japan shut down automatically.
Some 2,000 residents living near a nuclear plant in Fukushima prefecture, north of Tokyo, were told to evacuate but the government said no radiation was leaking. It said the evacuation was a precaution after a reactor cooling malfunction.
Electric Power Development (J-Power) has also halted operations of its Isogo thermal plant in Yokohama, Jiji reported.
(Reuters) - Japan's earthquake forced port closures and shutdowns of oil refineries and metal plants in the world's third-biggest economy on Friday, rattling commodity and energy markets as participants weighed up how quickly activity could return to normal.
The magnitude 8.9 earthquake, the biggest to hit Japan in 140 years, struck the northeast coast, triggering a 10-meter tsunami that cleared everything in its path from houses to cars and set farm buildings on fire. At least 59 people have been killed.
"This natural disaster could result in another sharp rise in risk aversion on markets and a continuation of yesterday's correction on commodity markets," Commerzbank said in a report. "The demand for oil could be lower, at least temporarily, because of the earthquake."
ICE Brent crude oil fell more than 2 percent to around $113 a barrel, partly due to the earthquake.
Tokyo gold futures rallied about 0.4 percent soon after the quake, but has since turned lower by around 0.7 percent at 3,473 yen per gram. Tokyo rubber fell 3.6 percent to 384.1 yen.
Metals firm Mitsui Mining said operations at its Hachinohe zinc smelter, with a capacity of 112,000 tonnes a year, were halted by the earthquake, and employees evacuated.
All Japanese ports have closed, with discharging operations stopped, shippers said. Top refiner JX Nippon Oil & Energy Corp halted operations at three plants, while fire engulfed a storage tank at a unit of Cosmo Oil Co. The two make up about 20 percent of the country's total refining capacity.
"It's a big mess. All discharge operations are suspended in the area," said one shipbroker.
TV footage showed several ships damaged by the tsunami including a large panamax vessel, which typically could carry up to 80,000 tonnes of coal, iron ore or grain, a second Tokyo-based shipbroker said.
A ship carrying 100 people was also swept away, the Kyodo news agency reported.
"Most or all coal stocks will be washed out at many of the coal-fired power plants," he said. "Ports will be closed at least for a short period until damage assessments can take place."
Around 4.4 million homes were without power in northern Japan, media said.
Hokuriku Electric Co said all three reactors at its Onagawa nuclear plant in northern Japan shut down automatically.
Some 2,000 residents living near a nuclear plant in Fukushima prefecture, north of Tokyo, were told to evacuate but the government said no radiation was leaking. It said the evacuation was a precaution after a reactor cooling malfunction.
Electric Power Development (J-Power) has also halted operations of its Isogo thermal plant in Yokohama, Jiji reported.
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