Latest reports and analysis of the impact of Japan's earthquake, tsunami and nuclear leak on the Chinese manufacturing industry point to the following three areas.

1. Supply chain

Chinese manufacturers that reply on raw materials and components from Japan are issuing low inventory warnings. They are scrambling to search for alternative suppliers in other regions.

A case in point is Tianjin Yoshida Co. Ltd, which, according to a Xinhua report, makes plastic packaging products for leading cosmetic brands such as Shiseido, SK II, and Chanel. The company said half of its resin supply came from Japan and current raw materials inventory will last about a month. Yoshida has started contacting resin suppliers in China, but said it remains uncertainty whether it will be able to find materials that match its high standards.

Guangdong Xinhui Meida Nylon, a producer of nylon, nylon filaments and related products, said in a company filing that the earthquake affected its purchase of caprolactam, a chemical which is used to make nylon, affecting its production.

Furthermore, the undersupply of certain commodities and products are driving up global prices, inflating material cost for manufacturers that don't have direct ties with Japanese supplies.

2. Export

Chinese companies that export to Japan may be experiencing disrupted flow of products, due to transportation and business shutdowns on the receiving end in Japan.

3. Opportunities

Some Chinese firms are taking extra production orders that have been transferred from Japan. Other companies benefit from price hikes of their products.

Nippon Polyurethane Industry Co. Ltd., for instance, reported its 400,000-ton MDI plant and 25,000-ton TDI plant in Shunan-Shi are being affected by the earthquake and power outages, according to China's Economic Information. Chinese suppliers such as Yantai Wanhua are expected to see stronger demand and higher prices.

Also see PN's report Japan earthquake and tsunami disrupts materials production.