IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v48y2016icp32-40.html
   My bibliography  Save this article

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

Author

Listed:
  • 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
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420716300046
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2016.01.010?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Ma, Linwei & Fu, Feng & Li, Zheng & Liu, Pei, 2012. "Oil development in China: Current status and future trends," Energy Policy, Elsevier, vol. 45(C), pages 43-53.
    2. Yin, Xiang & Chen, Wenying, 2013. "Trends and development of steel demand in China: A bottom–up analysis," Resources Policy, Elsevier, vol. 38(4), pages 407-415.
    3. Ma, Weimin & Zhu, Xiaoxi & Wang, Miaomiao, 2013. "Forecasting iron ore import and consumption of China using grey model optimized by particle swarm optimization algorithm," Resources Policy, Elsevier, vol. 38(4), pages 613-620.
    4. Shuhua Ma & Zongguo Wen & Jining Chen, 2012. "Scenario Analysis of Sulfur Dioxide Emissions Reduction Potential in China's Iron and Steel Industry," Journal of Industrial Ecology, Yale University, vol. 16(4), pages 506-517, August.
    5. Wilson, Jeffrey D., 2012. "Chinese resource security policies and the restructuring of the Asia-Pacific iron ore market," Resources Policy, Elsevier, vol. 37(3), pages 331-339.
    6. Ma, Yiqun, 2013. "Iron ore spot price volatility and change in forward pricing mechanism," Resources Policy, Elsevier, vol. 38(4), pages 621-627.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Su, Chi-Wei & Wang, Kai-Hua & Chang, Hsu-Ling & Dumitrescu–Peculea, Adelina, 2017. "Do iron ore price bubbles occur?," Resources Policy, Elsevier, vol. 53(C), pages 340-346.
    2. 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).
    3. Xuan Yanni & Yue Qiang, 2016. "Retrospective and Prospective Analysis on the Trends of China’s Steel Production," Journal of Systems Science and Information, De Gruyter, vol. 4(4), pages 291-306, August.
    4. Torbat, Sheida & Khashei, Mehdi & Bijari, Mehdi, 2018. "A hybrid probabilistic fuzzy ARIMA model for consumption forecasting in commodity markets," Economic Analysis and Policy, Elsevier, vol. 58(C), pages 22-31.
    5. Yufeng CHEN & Shuo YANG, 2022. "How Does the Reform in Pricing Mechanism Affect the World’s Iron Ore Price: A Time-Varying Parameter SVAR Model," Journal for Economic Forecasting, Institute for Economic Forecasting, vol. 0(2), pages 83-103, April.
    6. Chen, Wenhui & Lei, Yalin & Jiang, Yong, 2016. "Influencing factors analysis of China’s iron import price: Based on quantile regression model," Resources Policy, Elsevier, vol. 48(C), pages 68-76.
    7. 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.
    8. Hossein Kamalzadeh & Saeid Nassim Sobhan & Azam Boskabadi & Mohsen Hatami & Amin Gharehyakheh, 2019. "Modeling and Prediction of Iran's Steel Consumption Based on Economic Activity Using Support Vector Machines," Papers 1912.02373, arXiv.org.
    9. Bilgili, Faik & Mugaloglu, Erhan & Koçak, Emrah, 2018. "The impact of oil prices on CO2 emissions in China: A Wavelet coherence approach," MPRA Paper 90170, University Library of Munich, Germany.
    10. Wang, Hongxia & Fang, Hong & Yu, Xueying & Wang, Ke, 2015. "Development of natural gas vehicles in China: An assessment of enabling factors and barriers," Energy Policy, Elsevier, vol. 85(C), pages 80-93.
    11. Wang, Shenhao & Zhao, Jinhua, 2017. "The distributional effects of lotteries and auctions—License plate regulations in Guangzhou," Transportation Research Part A: Policy and Practice, Elsevier, vol. 106(C), pages 473-483.
    12. Kermeli, Katerina & Edelenbosch, Oreane Y. & Crijns-Graus, Wina & van Ruijven, Bas J. & van Vuuren, Detlef P. & Worrell, Ernst, 2022. "Improving material projections in Integrated Assessment Models: The use of a stock-based versus a flow-based approach for the iron and steel industry," Energy, Elsevier, vol. 239(PE).
    13. Antonakakis, Nikolaos & Chatziantoniou, Ioannis & Filis, George, 2017. "Oil shocks and stock markets: Dynamic connectedness under the prism of recent geopolitical and economic unrest," International Review of Financial Analysis, Elsevier, vol. 50(C), pages 1-26.
    14. Kanada, Momoe & Dong, Liang & Fujita, Tsuyoshi & Fujii, Minoru & Inoue, Tsuyoshi & Hirano, Yujiro & Togawa, Takuya & Geng, Yong, 2013. "Regional disparity and cost-effective SO2 pollution control in China: A case study in 5 mega-cities," Energy Policy, Elsevier, vol. 61(C), pages 1322-1331.
    15. Chen, Yufeng & Yang, Shuo, 2021. "Time-varying effect of international iron ore price on China’s inflation: A complete price chain with TVP-SVAR-SV model," Resources Policy, Elsevier, vol. 73(C).
    16. 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).
    17. Le Boulzec, Hugo & Delannoy, Louis & Andrieu, Baptiste & Verzier, François & Vidal, Olivier & Mathy, Sandrine, 2022. "Dynamic modeling of global fossil fuel infrastructure and materials needs: Overcoming a lack of available data," Applied Energy, Elsevier, vol. 326(C).
    18. Germeshausen, Robert & Panke, Timo & Wetzel, Heike, 2014. "Investigating the influence of firm characteristics on the ability to exercise market power: A stochastic frontier analysis approach with an application to the iron ore market," ZEW Discussion Papers 14-105, ZEW - Leibniz Centre for European Economic Research.
    19. Pustov, Alexander & Malanichev, Alexander & Khobotilov, Ilya, 2013. "Long-term iron ore price modeling: Marginal costs vs. incentive price," Resources Policy, Elsevier, vol. 38(4), pages 558-567.
    20. Li, Nan & Ma, Ding & Chen, Wenying, 2017. "Quantifying the impacts of decarbonisation in China’s cement sector: A perspective from an integrated assessment approach," Applied Energy, Elsevier, vol. 185(P2), pages 1840-1848.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:48:y:2016:i:c:p:32-40. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.