Analysis of the stainless steel market in the EU, China and US using co-integration and VECM

Giuliodori, David; Rodriguez, Alejandro

doi:10.1016/j.resourpol.2014.11.006

Cited by 27 publications

(16 citation statements)

References 30 publications

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“…Even if it seems to belong to a different region, all commodity prices are related to one another in the global world. Also steel prices in the world are largely affected by Chinese steel prices (Giuliodori and Rodriguez, 2015). Units of commodities are US dollars per ton for coal and wheat, RMB (Renminbi) per ton for steel, and the unit of TC rates is US dollars per day.…”

Section: Findings and Resultsmentioning

confidence: 99%

“…Steel is one of the most attractive and robust and sustainable materials in the world, with thousands of different types. This material increases the quality of our daily life and facilitates many difficulties (Giuliodori and Rodriguez, 2015). It is one of the main raw materials for construction and heavy industries.…”

Section: General View On the Commodity Marketmentioning

confidence: 99%

“…Steel prices in the world are largely affected by Chinese steel prices. This is inevitable when China is thought to produce about 50% of all the world's production (Giuliodori and Rodriguez, 2015). The demand for the coal has generally a certain standard trend compared to the demand for others.…”

Section: General View On the Commodity Marketmentioning

confidence: 99%

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Asymmetric causality from commodity prices to shipping markets: an empirical research on ISTFIX region

Açık

Başer

2020

WRITR

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Dry bulk shipping is influenced mainly by demand for commodities due to its derived demand structure. As one of the main determinants of the commodity demand is the price, interactions between commodity prices and freight rates are inevitable. However, the relevant literature is limited and information asymmetry is not taken into account. The aim of this study is to examine the asymmetric causality from the prices of the commodities mostly transported in Istanbul Freight Index (ISTFIX) region to the freight rates by method developed by Hatemi-J (2012a). The dataset consists of 122 monthly observations covering the dates between January 2008 and February 2018. The results reveal that positive and negative shocks in coal and steel prices are symmetrically causes of the positive and negative shocks in ISTFIX while negative shocks in wheat prices are cause of positive shocks in the index, and positive shocks in the commodity are the causes of negative shocks in the index.

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Section: Findings and Resultsmentioning

confidence: 99%

Section: General View On the Commodity Marketmentioning

confidence: 99%

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Asymmetric causality from commodity prices to shipping markets: an empirical research on ISTFIX region

Açık

Başer

2020

WRITR

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“…Many experts and scholars have conducted considerable research regarding the sustainability of manganese ore, industrial policy, market structure and resource status, noting that China's manganese ore industry faces issues such as low intensification, extensive growth, low utilization efficiency of manganese ore resources, poor sustainable development capability, and a problematic supply situation [30][31][32]. However, most of these analyses, focusing on the downstream products of manganese ore, such as the steel industry and clean energy materials, are based on the global market and are unclear in showing the domestic resources and market conditions.…”

Section: Introductionmentioning

confidence: 99%

Risk Identification and Evaluation of the Long-term Supply of Manganese Mines in China Based on the VW-BGR Method

Yan

Pei

et al. 2019

Sustainability

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Manganese is mostly used in the iron and steel industry and serves as an important metal mineral in the national economy. It is difficult to substantially increase the output of China’s manganese ore because it is of low grade and high impurity content. However, as a large consumer in the world, it is very important to ensure the long-term stable supply of this mineral. Collecting historical data on manganese ore in China over the past 20 years, we identified and evaluated risks during the whole process of production, supply, consumption, reserves, and trade of resources using the Volkswagen and German Federal Institute for Geosciences and Natural Resources (VW-BGR) method by selecting nine indicators: current market equilibrium, market price volatility, Reserve/production ratio, import dependence, import concentration, country risks, country concentration and future supply and demand trend. Furthermore, we assessed its economic importance by calculating the contribution of manganese ore involved in different value chains. It shows the same downward trend both in manganese ore consumption and economic importance, and the future demand of manganese ore will slow down, and the global supply will exceed demand. Based on the comprehensive evaluation of supply and demand trends in the past and future, it was concluded that the current market balance, import dependence and country concentration risks are the main driving factors for the supply risk of manganese ore in China, showing higher supply risk than that of the other factors; the resource and geostrategic risks are moderate, and may significantly reduce the supply risk if effective measures are implemented. As per the aforementioned analysis, to address the risk of supply interruption, this study provides some suggestions and measures, such as strengthening resource reserves and low-grade manganese ore utilization at home, actively exploring foreign markets, exploiting overseas resources, expanding import channels, extending the industrial chain, and adopting equity mergers and acquisitions abroad.

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“…There are abundant studies on various commodity markets in terms of causal linkages, efficiency, and predictability. For instance, Fernandez [ 1 ] examined linear and non-linear Granger causality in U.S. price indices and commodity series, Fernandez [ 2 ] examined the influence of nominal returns and real price cycles of various commodities, Giuliodori and Rodriguez [ 3 ] analysed the relation between European, China and U.S. prices of stainless steel market, Ahmed et al [ 4 ] conducted an empirical investigation to determine the long- and short-term relationships between natural resource abundance and economic growth in the Iranian economy, and Jain and Biswal [ 5 ] explored the relationships between global prices of gold, crude oil, the USD‒INR exchange rate, and the stock market in India. More recently, Kanjilal and Ghosh [ 6 ] investigated the dynamic relationship of global crude oil and gold prices, while Lahmiri et al [ 7 ] proposed a general framework for measuring short- and long-term dynamics in asset classes between financial and commodity markets and also examined efficiency in these markets [ 8 ].…”

Section: Introductionmentioning

confidence: 99%

The Informational Dynamics of Mean‒Variance Relationships in Fertilizer Markets: An Entropic Investigation

Lahmiri

Bekiros

2018

Entropy

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The risk‒return trade-off is a fundamental relationship that has received a large amount of attention in financial and economic analysis. Indeed, it has important implications for understanding linear dynamics in price returns and active quantitative portfolio optimization. The main contributions of this work include, firstly, examining such a relationship in five major fertilizer markets through different time periods: a period of low variability in returns and a period of high variability such as that during which the recent global financial crisis occurred. Secondly, we explore how entropy in those markets varies during the investigated time periods. This requires us to assess their inherent informational dynamics. The empirical results show that higher volatility is associated with a larger return in diammonium phosphate, potassium chloride, triple super phosphate, and urea market, but not rock phosphate. In addition, the magnitude of this relationship is low during a period of high variability. It is concluded that key statistical patterns of return and the relationship between return and volatility are affected during high variability periods. Our findings indicate that entropy in return and volatility series of each fertilizer market increase significantly during time periods of high variability.

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Analysis of the stainless steel market in the EU, China and US using co-integration and VECM

Cited by 27 publications

References 30 publications

Asymmetric causality from commodity prices to shipping markets: an empirical research on ISTFIX region

Asymmetric causality from commodity prices to shipping markets: an empirical research on ISTFIX region

Risk Identification and Evaluation of the Long-term Supply of Manganese Mines in China Based on the VW-BGR Method

The Informational Dynamics of Mean‒Variance Relationships in Fertilizer Markets: An Entropic Investigation

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