Research On China's Iron Ore Trade And Its Impact On Iron & Steel Industry

From the viewpoints of global supply and demand analysis, this paper focuses on the market structure of global iron ore trade, global price negotiation system and the influence of China's iron & steel industry by the features of the iron ore trade.The game structure between buyers and sellers in iron ore trade had been discussed by previous literatures from several ways such as monopoly. Some researchers had used the Rubinstein Theory to examine the effects of behaviors in the pricing talk. This paper concluded two key characteristics in global iron ore price negotiation and defined the First-reached Time of Equilibrium. This paper finds the FRTE's existence could be proved by Bernstein-Weirstrauss Theorem.The research also gave out functions for discount factors of both buyers and sellers and discussed the relations between long-term contact and real time market.Then this article established two formulas to describe the import price and consumption costs and examined some factors such as tax and FX rates'influence on them.By introducing Turkey Structure into a special case for global iron ore industry chain, this paper discussed the profits shifting problems among suppliers, manufactures and consumers. At the same time, this article had built a profit model basin on above two price formulas.Last but not least, this paper advised on China's iron ore strategies through research on Japan's experiences and current sector analysis.