Modeling Africa’s Demand for Iron and Steel Importation: An International Market Estimation Method Perspective

Abstract

This paper describes the first part of my PhD research project where Africa's Demand for Iron andSteel Importation Long-Term Relationship with its explanatory variables is investigated. We employ a panel of 19 African countries for a period that spans from 1994 to 2012. We consider the long-term relationship that may exist between the iron and steel importations and the explanatory variables used (GDP per capita, investment in infrastructure, real effective exchange rate, and the number of urban population). The empirical analysis is divided in three parts in this study. In the first part, the panel unit root tests and stationary tests revealed that all variables have a unit root; in first differences, they are stationary, these variables are integrated of order 1 or I (1) and the level of the variables are I (1). In the second part, the different cointegration tests conducted between the dependent variable and the explanatory variables result in the confirmation of the fact that they are cointegrated. In the third part, an estimation of the long-run relationship is carried out with Panel Error Correction Modeling (ECM) using Pooled Mean Group Regression Methods. The importations of iron and steel are positively correlated with all the independent variables of the model. All estimated coefficients are positive and significant at 1% level of significance. The usual determinants of importations (demand factor and factor price competitiveness) are significant in the modeling of iron and steel importations and signs are consistent with expectations except the real effective exchange rate.

Analysis of African Iron and Steel Market for Wuhan Iron and Steel Corporation (WISCO)’s Possible Entry: Preliminary Screening and Final Selection Statistical Scoring Model

“…In this study, the data used are the same as previous study [1], and observations of macroeconomic variables, such as GDP per capita, the index of consumer prices, import iron, the real effective exchange rate, the number of urban population, imports and exports total made on 19 African countries. The countries concerned are: Algeria, Burkina Faso, Ivory Coast, Egypt, Madagascar, Malawi, Mali, Mauritius, Morocco, Mozambique, Niger, Nigeria, Senegal, Seychelles, South Africa, Tanzania, Togo, Tunisia, and Zambia.…”

“…In this study, the data used are the same as previous study [1]. The data used are observations of macroeconomic variables, such as GDP per capita, the index of consumer prices, import iron, the real effective exchange rate, the number of urban population, imports and exports total made on 19 African countries.…”

Development of impurities removal process for low-grade Sanje iron ore using mineral processing technologies

“…Extraction of iron from low-grade ores has recently become an alternative iron beneficiation process due to decreasing high-grade Iron Ores and increasingly high demand of iron concentrate for steelmaking process, especially in the developing countries, Ravelomanana et al (2014). Sanje Iron Ore is the hematite ore deposit found in Nampundwe area of Zambia from which iron is to be used as the feed in the steelmaking process.…”

Removal of Silica and Alumina as Impurities from Low-Grade Iron Ore Using Wet High-Intensity Magnetic Separation and Reverse Flotation

“…The increase in demand for iron in the steelmaking industries and the depleting high-grade iron ores has led to the alternative extraction of iron from hematite based low-grade ores [1]. The low-grade iron ores contain higher grades of silica and alumina as gangue mineral assemblages with oxides of phosphorus existing in small quantities [2].…”