Market structure differences impacting australian iron ore and metallurgical coal industries

Lawrence, Kurt and Nehring, Micah (2015) Market structure differences impacting australian iron ore and metallurgical coal industries. Minerals, 5 3: 473-487. doi:10.3390/min5030473

Author Lawrence, Kurt
Nehring, Micah
Title Market structure differences impacting australian iron ore and metallurgical coal industries
Journal name Minerals   Check publisher's open access policy
ISSN 2075-163X
Publication date 2015-07-22
Sub-type Article (original research)
DOI 10.3390/min5030473
Open Access Status DOI
Volume 5
Issue 3
Start page 473
End page 487
Total pages 15
Place of publication Basel, Switzerland
Publisher M D P I AG
Collection year 2016
Language eng
Abstract Steelmaking relies on iron ore and metallurgical coal as main ingredients, the trade of which is hypothesized to theoretically change in tandem. However, strong correlation is not evident in historical trade prices of steelmaking inputs. To determine causes to this occurrence, the market factors that influence the Australian iron ore and metallurgical coal industries were studied. Data was collected over the past decade for worldwide resource production and trade quantities of crude steel, iron ore, and metallurgical coal. The data was analysed to reveal trends, allowing examination of the macroeconomic trade of metallurgical coal and iron ore with relation to worldwide and country specific steel production. It was determined that the influential growth of China’s steel production has spurred the growth of worldwide iron ore demand, which was met with increased production and supply, from Australia. The increased metallurgical coal demand has been met with increased production within China locally. Measures of supply elasticity were created for worldwide iron ore and metallurgical coal trade, where comparisons between Australia’s industries to the relevant greatest competitor were examined. The results, along with respective resource production data, highlighted the elevated competitive position that Australian iron ore producers enjoy compared to metallurgical coal producers. Trade characteristics revealed the different market structures that iron ore and metallurgical coal industries operate in, prompting a discussion of the effects these markets have on the two Australian industries.
Keyword Chinese steel production
Iron ore industry
Metallurgical coal industry
Supply elasticity
Q-Index Code C1
Q-Index Status Confirmed Code
Institutional Status UQ

Document type: Journal Article
Sub-type: Article (original research)
Collections: School of Mechanical & Mining Engineering Publications
Official 2016 Collection
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