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The development of the Asian iron ore market: A lesson in long-run market contestability

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  • Hurst, Luke

Abstract

This paper provides an historical analysis of how the growth of Japan's post-World War Two iron ore demand led to the development of the Asian iron ore market. The paper analyses bilateral advantages that geographic closeness provided to Japanese and Australian iron ore traders, and calculates how the bilateral quasi-profits arising from geographic closeness were divided between them.

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  • Hurst, Luke, 2015. "The development of the Asian iron ore market: A lesson in long-run market contestability," Resources Policy, Elsevier, vol. 46(P2), pages 22-29.
    • Handle: RePEc:eee:jrpoli:v:46:y:2015:i:p2:p:22-29
    DOI: 10.1016/j.resourpol.2015.08.001
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    References listed on IDEAS

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    1. Colley, Peter, 1998. "Trading practices in the coal market: Application of the theory of bilateral monopoly to the Australia-Japan coal trade," Resources Policy, Elsevier, vol. 24(1), pages 59-75, March.
    2. Luke Hurst, 2015. "A lesson in market contestability : calculating the cost of Chinese state intervention in iron ore price negotiations," Energy Working Papers 24820, East Asian Bureau of Economic Research.
    3. Anil Nair & Suresh Kotha, 2001. "Does group membership matter? Evidence from the Japanese steel industry," Strategic Management Journal, Wiley Blackwell, vol. 22(3), pages 221-235, March.
    4. Rodrik, Dani, 1982. "Managing resource dependency: The United States and Japan in the markets for copper, iron ore and bauxite," World Development, Elsevier, vol. 10(7), pages 541-560, July.
    5. Boyce, Gordon, 2001. "Multilateral Contracting in Australian Mining: The Development of Hamersley Iron, 1961–1966," Enterprise & Society, Cambridge University Press, vol. 2(3), pages 543-575, September.
    6. Sukagawa, Paul, 2010. "Is iron ore priced as a commodity? Past and current practice," Resources Policy, Elsevier, vol. 35(1), pages 54-63, March.
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    Cited by:

    1. Li, Wenlong & Huang, Shupei & Qi, Yabin & An, Haizhong, 2022. "RDEU hawk-dove game analysis of the China-Australia iron ore trade conflict," Resources Policy, Elsevier, vol. 77(C).
    2. Guo, Sui & Li, Huajiao & An, Haizhong & Sun, Qingru & Hao, Xiaoqing & Liu, Yanxin, 2019. "Steel product prices transmission activities in the midstream industrial chain and global markets," Resources Policy, Elsevier, vol. 60(C), pages 56-71.
    3. Song, Yunting & Wang, Nuo & Yu, Anqi, 2019. "Temporal and spatial evolution of global iron ore supply-demand and trade structure," Resources Policy, Elsevier, vol. 64(C).
    4. Zhu, Xuehong & Zheng, Weihang & Zhang, Hongwei & Guo, Yaoqi, 2019. "Time-varying international market power for the Chinese iron ore markets," Resources Policy, Elsevier, vol. 64(C).

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