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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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    Cited by:

    1. 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.
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    7. 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.
    8. 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).
    9. 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).
    10. 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.
    11. 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).
    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.
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