Do iron ore, scrap steel, carbon emission allowance, and seaborne transportation prices drive steel price fluctuations?

Yiqun Ma

Resources Policy, 2021, vol. 72, issue C

Abstract: We examine the sensitivity of China's steel price movements to iron ore, scrap steel, carbon emission allowance, and seaborne transportation prices over the period 2010–2020. More specifically, the price spillover, the dependence structure, and the spillover risk between iron ore, scrap steel, carbon emission allowance, seaborne transportation, and China's steel prices are analyzed in a multivariate framework, vine copula, and conditional risk setup. Our results demonstrate that before and after the implementation of China's policy to cut overcapacity in steelmaking, China's steel prices are mainly subject to iron ore prices. Our results have potential implications for policymakers to exploit market incentives to regulate steelmakers' investments and capacity in steelmaking.

Keywords: Steel prices; Vine copula; Risk analysis (search for similar items in EconPapers)
Date: 2021
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:jrpoli:v:72:y:2021:i:c:s030142072100129x

DOI: 10.1016/j.resourpol.2021.102115

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