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Clustering and Volatility Spillovers in Steel-Related Commodity Markets: Evidence from US Producer Prices and Global Metal Indices

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  • Ana Lorena Jiménez-Preciado

    (Escuela Superior de Economía, Instituto Politécnico Nacional, Red de Medio Ambiente, Miguel Hidalgo, Mexico City 11350, Mexico
    Current address: Av. Plan de Agua Prieta 66, Miguel Hidalgo, Mexico City 11350, Mexico.
    These authors contributed equally to this work.)

  • Francisco Venegas-Martínez

    (Escuela Superior de Economía, Instituto Politécnico Nacional, Red de Medio Ambiente, Miguel Hidalgo, Mexico City 11350, Mexico
    Current address: Av. Plan de Agua Prieta 66, Miguel Hidalgo, Mexico City 11350, Mexico.
    These authors contributed equally to this work.)

  • José Álvarez-García

    (Departamento de Economía Financiera y Contabilidad, Instituto Universitario de Investigación para el, Desarrollo Territorial Sostenible (INTERRA), Universidad de Extremadura, 06071 Badajoz, Spain
    These authors contributed equally to this work.)

Abstract

This research examines the clustering structure and volatility spillover among steel-related products in monthly data from July 2004 to September 2025. Using various clustering methods, K-means, hierarchical techniques and market network analysis with correlations, four distinct marketing clusters have been identified: (1) US (United States) steel products, (2) global cyclical raw materials, (3) US iron ore market, and (4) global base metals. The overall volatility spillover index stands at 15.39%, exhibiting significant dynamics that vary over time, driven by major economic events, including the 2008 global financial crisis, the 2015 Chinese currency devaluation, the COVID-19 outbreak, the 2022 Ukrainian conflict, and the 2025 Trump trade tariffs. The primary driver of volatility in global trade is US carbon steel wire prices, while the largest net recipient of volatility shocks is the global copper price. These findings have key implications for understanding the global interconnectedness of steel markets in the current context.

Suggested Citation

  • Ana Lorena Jiménez-Preciado & Francisco Venegas-Martínez & José Álvarez-García, 2026. "Clustering and Volatility Spillovers in Steel-Related Commodity Markets: Evidence from US Producer Prices and Global Metal Indices," Commodities, MDPI, vol. 5(2), pages 1-17, April.
    • Handle: RePEc:gam:jcommo:v:5:y:2026:i:2:p:8-:d:1910936
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