The iron ore world market in the early twenty-first century—the impact of the increasing Chinese dominance

Hellmer, Stefan; Ekstrand, Joakim

doi:10.1007/s13563-012-0021-1

Cited by 14 publications

(9 citation statements)

References 3 publications

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“…In just a few short years, the shift to the spot market, coupled with the intensification of competition, has strongly weakened the steel industry, in particular, the traditional steelmakers, which have also been hard hit by the economic crisis. Moreover, during this period, the oligopolistic structure of the mining industry has been maintained because, as a result of the demand shock, only the Australian and Brazilian mining companies have been able to adjust their short‐term supply, in contrast to other marginal mining firms, as in Canada, India or Sweden (Hellmer ).…”

Section: The Impacts Of the Steel Demand Shock Of The 2000smentioning

confidence: 99%

The Global Iron and Steel Industry: From a Bilateral Oligopoly to a Thwarted Monopsony

Sourisseau

2018

Australian Economic Review

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China's growing urbanisation and the speed of development of its manufacturing industry has led to a shock in steel demand. This article analyses the evolution of the market structure and the related market power shift. From a stable situation in which a few steelmakers negotiated with a few mining firms to set an annual price, the market has evolved to a new price-fixing regime as a result of supplydemand confrontation. A new composition of stakeholders in the iron and steel sectors has emerged, transitioning from an oligopoly to a thwarted monopsony.

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Section: The Impacts Of the Steel Demand Shock Of The 2000smentioning

confidence: 99%

The Global Iron and Steel Industry: From a Bilateral Oligopoly to a Thwarted Monopsony

Sourisseau

2018

Australian Economic Review

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“…9 It is, however, in line with Hellmer and Ekstrand (2013), who state that producers in the USA and Sweden may have been able to generate economic rents during the recent rapid iron ore demand expansion as those companies were not able to raise production but nevertheless benefited from higher prices.…”

mentioning

confidence: 78%

“…The prices given in the long-term contracts consist of a (regional) benchmark price as a basis and a discount or premium contingent on quality, product group and transport distance (Hellmer and Ekstrand, 2013). In the past, the benchmark price was determined annually by so-called 'champion negotiations' (Sukagawa, 2010, p.56), in which the largest producers and largest buyers engaged in 'a form of an oligopoly-oligopsony negotiation' (Wilson, 2012).…”

Section: Specification Of the Empirical Modelmentioning

confidence: 99%

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

2014

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Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW. AbstractThis paper empirically analyzes the existence of market power in the global iron ore market during the period 1993-2012 using an innovative Stochastic Frontier Analysis approach introducedby Kumbhakar et al. (2012). In contrast to traditional econometric procedures, this approach allows for the estimation of firm-and time-specific Lerner indices and, therefore, the assessment of the influence of individual firm characteristics on the ability to generate markups. We find that markups on average amount to 20%. Moreover, location and experience are identified to be the most important determinants of the magnitude of firm-specific markups.

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“…China external dependence reached 78.5% in 2014 [26]. China growing demand for iron ore inevitably accelerates the ore price, resulting in a negative influence in China purchasing power and in economic development [27]. Meanwhile, a large demand for iron ore also influences the exporting countries.…”

Section: Fuel Consumption In Iron Ore Miningmentioning

confidence: 99%

Analysis of the Energy Efficiency of Diesel Oil Consumption in the Brazilian Iron Ore Mining Company

Fernandes¹,

Leal²,

Figueiredo³

et al. 2018

JPEE

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This paper aims to evaluate the diesel oil consumption between 2008 and 2015 in the production of iron ore in Brazil, creating correlations between energy intensity (production), economy and checking the impact of fuel prices on the commodity. During the analyzed period, the years 2008-2009 indicated economic crises, which interfered in the price and the commercialization of iron ore products. The physical intensity was 0.2% higher than the economic intensity. In the period from 2010 to 2014, economic activity remained more stable, with a decreasing trend, mainly due to the increase of iron ore prices. The physical intensity is much higher than the economic intensity influenced by the expansion of the Chinese economy. The year of 2014 indicated the end of the high iron ore price cycle and the beginning of supply and demand stabilization with consequent reduction in prices. In 2015, the market entered the stabilization phase, with a continuous reduction in unit production costs and transportation logistics. There was an abrupt change due to the strong increase of the economic intensity due to the fall of the international prices of iron ore. The diesel oil consumption plays a vital role in the scenario of cost reduction in iron ore production and a deeper analysis must be done in order to discover some options to change the energy matrix.

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The iron ore world market in the early twenty-first century—the impact of the increasing Chinese dominance

Cited by 14 publications

References 3 publications

The Global Iron and Steel Industry: From a Bilateral Oligopoly to a Thwarted Monopsony

The Global Iron and Steel Industry: From a Bilateral Oligopoly to a Thwarted Monopsony

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

Analysis of the Energy Efficiency of Diesel Oil Consumption in the Brazilian Iron Ore Mining Company

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