| Since China has joined WTO and integrated in global economy, the process of China’s urbanization and industrialization is speeding up increasingly and China’s demand of steel grows quickly. However, in recent years, the fact that the shock of world market makes the price of steel more volatile is treating the security of China’s steel industry and economy. On the background of that, this paper discusses the pricing power of China on steel from the perspective of industry security. It is not only helpful to maintain and improve the development of China’s steel industry, but also can give advice to purchasing the pricing power of other commodities for China and maintaining other industries’security of China.On the base of analysis of related theories and reality, this paper takes systematic empirical analysis on the price of steel futures of SHFE, LME and MCX. The research shows that:(1) though LME steel market still hold the central place of information discovery in world market, SHFE is no longer a passive receiver but an important participant in world steel pricing. SHFE has impact on the information of the steel market of LME and MCX.(2) Under the influence of both domestic future market and international future market, domestic future market has part-owned pricing power on domestic spot, however, steel future has not formed a decisive pricing mechanism on domestic steel market yet.(3) Translates the two empirical results into adjusting coefficients and then introduces industry security system, this paper finds that China’s steel future market’s pricing power is still weaker than developed countries’. The lack of pricing power’s adverse impacts is mainly in external dependence. In general, China has part-owned future pricing power and pricing power’s adverse impacts on China’s steel industry is not hard to reverse. Based on this conclusion, this paper gives policy advice to how to developer China’s steel future market from the point of national industry security. |
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