Study On Market Structures For Iron And Steel Industry Of China Based On Concentration

Market structure is the core in industry economics and concentration is the most widely studied area among various elements of it. Recently, some explanations of iron and steel focus on increasing industrial concentration. The object of this paper is iron and steel industry, which capital-intensive and has obvious scale of economy. Furthermore, based on the experience of other countries, oligarch monopoly is the mature sign for iron and steel industry, and industrial concentration is its embodiment on organization structure. With the entry to WTO, Chinese iron and steel industry would face intensive competition and threats. Therefore, how to improve the international competition ability quickly has become an urgent task.The main goal of the paper is to define the main factors that will affect greatly the industrial concentration rate of Chinese iron and steel industry. To achieve that, the author utilizes the methods of yearbook statistic, correlation analysis and regression analysis.This paper analyzes the situation of concentration rate in Chinese iron and steel industry, defines the criteria that will affect its concentration and finds the main factors by mathematic regression model. Then, from the regression results, the author suggests the possible ways to improve the concentration rate of Chinese iron and steel industry.