After the tsunami, steel and construction

To talk about economic law in the face of human tragedy may be counterintuitive, especially in India Ocean tsunami before such a disaster. Analysts said that only a small number of industries in the Asia Pacific region, including tourism, will be affected in the short term, while other industries, such as the construction industry also expect long-term benefits. During the SARS crisis in 2003, although the mortality rate is far lower than the present, but the impact of the economy is much greater. The situation will be reversed, "said Morgan, a regional economist at JP in Singapore, (RajivMalik). The world's largest reinsurer, Munich Reinsurance Company (MunichRe) estimates that the total loss associated with the tsunami will reach $14 billion. Compared with the 1995 Kobe earthquake in Japan caused by the loss of $132 billion, this figure is inferior by comparison. The Kobe earthquake killed 5000 people, the number of deaths is much lower than that of the disaster. The main reason for this difference is that the tsunami mainly affected economically poor areas, where there is little industry or infrastructure. Most of the money will be spent on reconstruction, which Thailand plans to spend $510 million to rebuild the main tourist areas near Phuket Island, Indonesia is expected to invest $1 billion to rebuild the northern Sumatra near the epicenter. Since the disaster in December 26, 2004, Thailand's cement (SiamCement), NSM and Sahariviya and other companies in the construction industry, the company's share price has risen in Siam. Economists expect an increase in demand for steel and other construction products over the next year. Siam cement, Thailand's main cement producer, said: "we have not yet come up with figures, but demand is strong. We estimate that the hotel is scheduled to reopen in time for the next year's tourist season. Analysts in Sydney expect the Australian construction industry, which has a large presence in Asia, to benefit from rebuilding efforts. Engineering and construction group Leiden Holdings (LeightonHoldings), two BlueScope of Australia and OneSteel, steel exporters of Boluo building materials group (Boral) and James Hadi (JamesHardie), may be the benefit of Australian companies. Most of the reconstruction funds from the government budget and international aid agencies, rather than insurers, because in general, in view of the economic situation in the region, they have no insurance "good, Australia QBE insurance company's chief financial officer Neil Drabo said in Moscow (NeilDrabsch). The biggest impact will be the local insurance company. Thailand Reinsurance Company (ThaiReinsurance) is expected to net loss of 100 million baht ($2 million 600 thousand). "The business of Thailand reinsurance involves most of the risks in Thailand, so it will suffer losses due to the disaster," the company said. Although tourism will suffer the most direct impact from the tsunami disaster, but the recovery rate may be faster than the SARS crisis, Marek said. Singapore Airlines (SingaporeAirlines), Cathay Pacific (CathayPacific) and Air Asia (AirAsia) and other regional airlines shares have fallen; some analysts call this phenomenon as "conditioned reflex". Thailand's International Airlines (ThaiInternational) shares have fallen by nearly 5% this week after a wave of holiday cancellations, but the extent of the loss of the country's airlines remains unclear. Thailand International Airlines is the parent company of Thailand Airlines (ThaiAirways). "The tourism industry has been hit hard, and it will certainly affect us, but I think the recovery will be faster than people expected," said Kanok Abhiradee, President of Thailand international aviation (KanokAbhiradee). Singapore Airlines said its business was only "slightly affected". Although some cancelled flights to resorts, travel to Sri Lanka and India increased, as people flew to the disaster area to help relatives. South Korean air carriers (KoreanAir) and Asiana Airlines (AsianaAirlines) have been to Thailand Phuket Island (Phuket) flights were suspended for a month, Hongkong Dragon Airlines (Dragonair) said, "a lot of received cancel flights to the Phuket Island. Travel agencies say there is little sign that holidaymakers have been scared to travel to the Asia Pacific region.