Raw Materials Market of China

Dmitry Izotov

Spatial Economics=Prostranstvennaya Ekonomika, 2013, issue 4, 70-89

Abstract: Deficit of raw materials is becoming an important concern for the Chinese economy as it continues to grow. This deficit is amended with imports, which – in their own turn – are limited by the high level of global prices. The build-up issue of raw materials imports is going to solve by the measures of monetary policy (RMB’s revaluation against the USD). Analysis of China’s market of raw materials reveals that the largest increase in the physical volume of imports is concentrated in crude oil, LNG, iron ore and coal. As for Russia, its supplies and share in total Chinese imports of raw materials tend to increase. Author employs regression equations based on international statistics data to show that RMB’s revaluation, ceteris paribus, increases physical volumes of raw materials imports. However, the main factor of coal and LNG imports growth is energy consumption by Chinese heavy industry; imports of oil products – producers’ prices; meanwhile imports of steel products tend to decrease with the growth of steel exports. RMB’s revaluation increases physical volumes of imports of low value added raw materials from Russia (coal, crude oil, iron ore).

Keywords: ?; import; ?; RMB’s; revaluation; ?; price; ?; crude; oil; ?; oil; products; ?; LNG; ?; coal; ?; iron; ore; ?; steel; ?; China; ?; Russia (search for similar items in EconPapers)
Date: 2013
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Persistent link: https://EconPapers.repec.org/RePEc:far:spaeco:y:2013:i:4:p:70-89

DOI: 10.14530/se.2013.4.070-089

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