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A system analysis of the development strategy of iron ore in China

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  • Wu, Jinxi
  • Yang, Jie
  • Ma, Linwei
  • Li, Zheng
  • Shen, Xuesi

Abstract

This paper aims to present a full picture of the current status and future trends of China's iron ore development using system analysis on the iron supply chain. First, we map China's iron flow to present the physical patterns of iron ore supply and demand in China. Next, the historical and future trends of iron ore development in China are discussed from four aspects including demand, resource availability, technology improvement, and strategy and policy. Based on these aspects, we conclude how to sustainably obtain overseas iron ore resources at a reasonable price as the key issue, and this issue is further analyzed from perspectives of market structure, the pricing mechanism, and Chinese steel companies’ behavior. In conclusion, we determined China must enhance cooperation with the main global suppliers, expand overseas investments effectively, and enhance domestic coordination to secure the import of resources and reduce price fluctuations.

Suggested Citation

  • Wu, Jinxi & Yang, Jie & Ma, Linwei & Li, Zheng & Shen, Xuesi, 2016. "A system analysis of the development strategy of iron ore in China," Resources Policy, Elsevier, vol. 48(C), pages 32-40.
    • Handle: RePEc:eee:jrpoli:v:48:y:2016:i:c:p:32-40
    DOI: 10.1016/j.resourpol.2016.01.010
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    References listed on IDEAS

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    Citations

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    1. 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.
    2. Ewees, Ahmed A. & Elaziz, Mohamed Abd & Alameer, Zakaria & Ye, Haiwang & Jianhua, Zhang, 2020. "Improving multilayer perceptron neural network using chaotic grasshopper optimization algorithm to forecast iron ore price volatility," Resources Policy, Elsevier, vol. 65(C).
    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. Bazhanov, Andrei, 2018. "Difficulties in the forecasting of iron ore price: a review," MPRA Paper 87881, University Library of Munich, Germany, revised 12 Jul 2018.
    5. Yang, Honghua & Ma, Linwei & Li, Zheng, 2023. "Tracing China's steel use from steel flows in the production system to steel footprints in the consumption system," Renewable and Sustainable Energy Reviews, Elsevier, vol. 172(C).
    6. Xu Li & Chinhao Chong & Linwei Ma & Pei Liu & Xuesi Shen & Zibo Jia & Cheng Wang & Zheng Li & Weidou Ni, 2018. "Coordinating the Dynamic Development of Energy and Industry in Composite Regions: An I-SDOP Analysis of the BTH Region," Sustainability, MDPI, vol. 10(6), pages 1-28, June.
    7. Ren, Shuai & Li, Huajiao & Wang, Yanli & Guo, Chen & Feng, Sida & Wang, Xingxing, 2021. "Comparative study of the China and U.S. import trade structure based on the global chromium ore trade network," Resources Policy, Elsevier, vol. 73(C).
    8. Chinhao Chong & Xi Zhang & Geng Kong & Linwei Ma & Zheng Li & Weidou Ni & Eugene-Hao-Chen Yu, 2021. "A Visualization Method of the Economic Input–Output Table: Mapping Monetary Flows in the Form of Sankey Diagrams," Sustainability, MDPI, vol. 13(21), pages 1-56, November.
    9. Yang, Dong & Zhang, Lingge & Luo, Meifeng & Li, Feng, 2020. "Does shipping market affect international iron ore trade?– An equilibrium analysis," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 144(C).
    10. 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).
    11. Yuancheng Lin & Honghua Yang & Linwei Ma & Zheng Li & Weidou Ni, 2021. "Low-Carbon Development for the Iron and Steel Industry in China and the World: Status Quo, Future Vision, and Key Actions," Sustainability, MDPI, vol. 13(22), pages 1-28, November.
    12. Min He & Pei Liu & Linwei Ma & Chinhao Chong & Xu Li & Shizhong Song & Zheng Li & Weidou Ni, 2018. "A Systems Analysis of the Development Status and Trends of Rural Household Energy in China," Energies, MDPI, vol. 11(7), pages 1-23, July.
    13. Chong, Chin Hao & Tan, Wei Xin & Ting, Zhao Jia & Liu, Pei & Ma, Linwei & Li, Zheng & Ni, Weidou, 2019. "The driving factors of energy-related CO2 emission growth in Malaysia: The LMDI decomposition method based on energy allocation analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    14. Sun, Sizhong & Anwar, Sajid, 2019. "R&D activities and FDI in China’s iron ore mining industry," Economic Analysis and Policy, Elsevier, vol. 62(C), pages 47-56.

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