Steel product prices transmission activities in the midstream industrial chain and global markets

Sui Guo, Huajiao Li, Haizhong An, Qingru Sun, Xiaoqing Hao and Yanxin Liu

Resources Policy, 2019, vol. 60, issue C, 56-71

Abstract: Market competition and trade activities between different economies’ steel industries induce severe steel product price transmission between different economies. Furthermore, steel products in different phases of the industrial chain present various price transmission features. In this research, we calculate the Granger causality relationship between different steel products in different markets and the midstream industry chain. We then construct the global steel product price transmission network and regional price transmission network. We analyze the network indicators and draw the following conclusions. First, emerging economies play a major role in international steel product price transmission activities. Second, billet and plates of middle thickness transmit the most price in the steel market. Third, China imposes price transmission impacts on the most regions with the widest range. Lastly, steel products at the end of the midstream steel industrial chain are “bridges” of price transmission activities. This research will guide market individuals in the steel industry to adjust their behaviors according to market signals.

Keywords: Price transmission; Steel industrial chain; Complex network; Granger causality test (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (10)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301420718303714
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:60:y:2019:i:c:p:56-71

DOI: 10.1016/j.resourpol.2018.11.014

Access Statistics for this article

Resources Policy is currently edited by R. G. Eggert

More articles in Resources Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().