Chinese resource security policies and the restructuring of the Asia-Pacific iron ore market

This paper reviews the restructuring of the Asia-Pacific iron ore market in the wake of the rise of the Chinese steel industry. Prior to the 2000s, this market was characterised by two key features—high firm-level concentration on both the producer and consumer sides, and price determination through annually negotiated benchmark pricing between Australian mining and Japanese steel firms. However, owing to rapid growth in the Chinese steel industry and its emergence as the region's principal iron ore consumer, the Asia-Pacific iron ore market has been dramatically restructured during the last decade. This process has been accelerated since 2005 by Chinese governmental resource security policies, which have sought to address current record high iron ore prices through the use of foreign investment to sponsor new market entrants and the formation of an import cartel amongst the Chinese steel firms. This paper evaluates how these policies have driven restructuring in the Asia-Pacific iron ore market, through an analysis of the growth of China's steel industry, Chinese resource security policies aimed at lowering iron ore import costs, and their effects upon the regional market's ownership structure and price determination mechanisms. It argues that while Chinese investment and cartelisation policies have catalysed significant changes to the ownership and pricing structures of the Asia-Pacific iron ore market, they have carried only mixed benefits for the Chinese steel industry's resource security.     

Changing environmental strategies over time: an empirical study of the steel industry in the United States.

This study investigates how environmental strategies change over time. We submit evidence from the US steel industry that firms have modified their strategies over time. We offer that US industry passed through three stages--cost minimization, cost-effective compliance, and beneficial environmental controls. We compare typologies of environmental strategies and choose that of C. Oliver as the most appropriate. We investigate how environmental strategies in the steel industry changed over time a 4-year period. We offer that a further understanding of Oliver's strategies may increase understanding of the relationship between business and government on environmental issues. One over-arching problem in our field is the need to adequately operationalize how firms change strategies and pass through different stages. We hope that our study will help future researchers and practitioners better articulate the concepts of environmental strategies over time. Our study focused on the steel industry in the United States. We chose the US steel industry as one of the major environmental actors in the United States. The United States Environmental Protection Agency ranks the iron and steel industry as the largest industrial source of toxic environmental contamination. We encourage researchers to evaluate and test our methodology and findings in other contexts--both in other nations and different industries.     

Backward linkage development in the South African PGM industry: A case study

Backward linkages refer to the various inter-firm relationships connecting an industry with its supply chain. Demand–supply interactions between producer firms and suppliers of original equipment, strategic inputs, components and specialised services have played an important role in the evolution of the South African mining sector, contributing indirectly to employment creation, new business growth and expansion, improved efficiency of mining operations, and new knowledge generation. This paper presents a case study of backward linkage development in the South African platinum group metals (PGM) industry and draws on the findings from a quantitative and qualitative analysis of the sector undertaken in 2007. A profile of the supply chain is provided and an assessment made of the strength and sustainability of existing linkages.     

Economies of scale in global iron-making

In this paper, we investigate the presence of economies of scale in the global iron-making industry for integrated steel plants, iron making being the first stage in the steel-making process. Iron making depends on basic commodities, such as iron ore, coke and various forms of energy, required in the operation of the blast furnace, which can be classified as essential inputs and used in fixed proportions to produce iron. A generalized Leontief cost function is estimated using panel data for 69 integrated plants, such a specification being appropriate for technologies with essential inputs that are used in fixed proportions in production. A significant scale effect is observed due to the existence of fixed costs and a linear dependence of the cost function on production. Under a simple linear cost function, a rough estimate of the breakeven scale of plant, where costs equal revenue, is 4.5 Mt per year. Competitiveness, as measured by the ratio of plant average cost per tonne to best practice cost per tonne, can be shown to be positively related to the scale of production as well as the cost of essential inputs. Therefore, low-cost producers are also often producers with low raw material costs and production levels below the estimated breakeven scale of operation. Labor costs, although significant, are comparatively less important as a driver towards low costs.     

碳中和背景下中国钢铁行业低碳发展路径

钢铁行业的低碳转型对于我国实现碳达峰碳中和目标具有至关重要的作用,有必要提前研究"双碳"目标下中国钢铁行业的发展路径及技术路线图。本文回顾了中国钢铁行业发展的历史趋势;归纳了钢铁行业实现低碳发展的主要技术选择;基于文献调研汇总了近年来关于中国钢铁行业低碳发展路径的相关研究,并总结了不同研究对钢铁未来低碳路径中关键参数的判断,包括粗钢产量、废钢资源量、电炉炼钢比例、低碳技术应用、能耗强度、二氧化碳排放等,同时分析了不同研究得出的普遍认识和主要差异。在研究中我们也简要分析了中国钢铁转型路径与全球钢铁转型路径之间的异同。基于上述分析,本文提出了"双碳"目标下中国钢铁行业发展路径的研究需求。     

The Chinese steel industry

The Chinese steel industry achieved even growth in the 1980s and China is now the world's fourth largest steel producing country. Two factors that have played important roles in this development of the Chinese steel industry are the reform of the system or the strengthening of enterprise autonomy accompanying market reform, and the introduction of advanced technology from Western countries as a continuing policy since the 1970s. The Chinese steel industry still lags far behind those of other steel producing countries in terms of equipment and production technology, however. The present situation and problems of the Chinese steel industry in the 1990s are discussed here, together with a review of its development in the 1980s.     

Engaging Economic Development Agencies in Environmental Protection: The case for embedded autonomy

This article examines the role of economic development agencies in strengthening the environmental performance of industry within rapidly industrialising East Asian economies. Three case-study examples are considered, namely, the role of the Industrial Development Board in reducing industrial pollution in Taiwan, pollution control in the palm oil industry in Malaysia, and the role of the Economic Development Board in influencing environmental performance of industry in Singapore. The concept of embedded autonomy is developed to consider the ways in which agencies of economic development can work with firms and industries while simultaneously remaining autonomous from these firms with respect to setting and enforcing performance standards. The three cases suggest that a form of policy integration that more directly integrates economic and environmental goals within agencies of economic development may be feasible, but only where there exists a strong autonomous government bureaucracy and where there is strong societal commitment to improving the environmental performance of industry.     

Variation in implementation of corporate social responsibility practices in emerging economies' firms: A survey of Chilean fruit exporters

As in many sectors in emerging economies, the concept of corporate social responsibility (CSR) has become important for exporting agri‐food firms in view of their integration in global supply chains. The purpose of this research was to assess the implementation by Chilean fruit exporters of CSR practices that go beyond minimum legal requirements. The principal results are that, although socio‐economic components of CSR such as poverty reduction and socially just working conditions receive much attention, firms consider comprehensive environmental practices as less important. The results also indicate a slightly higher implementation of comprehensive CSR practices by large firms as compared to small and medium sized enterprises (SMEs). The main conclusion is that, although CSR is increasingly considered by Chilean firms, among SMEs in particular, more attention needs to be paid to raising awareness among managers about CSR practices and to providing assistance in their implementation. This supports findings on CSR implementation in other emerging economies that an active role of civil society and industry organizations is key and that targeted support strategies are needed to install a holistic awareness of CSR and help firms to improve on those aspects of CSR that are relatively underdeveloped.     

A horizontal merger in the iron ore industry: An event study approach

The purpose of this paper is to analyse the competitive and efficiency impacts of a large merger in the world iron ore industry, using an event study approach. This method builds on an analysis of stock market reactions of the merging firms as well as close rivals at the time of the merger announcement. The event study method allows for the possibility to assess both the motivations behind as well as the welfare effects of the merger. The event study results for the merger announcement of Rio Tinto and North Ltd. show that, according to the market reactions, the main motive behind the merger was either the market power or the efficiency hypothesis. When adjusting the analysis to include several information releases about the merger, the overall result indicates that efficiency improvements were the predominant motives behind the merger. Thus, the event study results suggest that there are positive welfare effects to expect and the European Commission's decision to allow the merger is supported.     

The long and winding road to resource efficiency – An interdisciplinary perspective on extended producer responsibility

Extended producer responsibility is advocated for its capacity to spur resource efficiency through green innovation and closing loops downstream of consumption. Its rationale is the extension of the polluter-pays principle to the post-consumption phase. This paper analyze the underlying mechanisms that are supposed to work under the EPR approach, and proposes an alternative view. The main purpose of EPR is seen as the creation of the bases for legitimizing the involvement if industry taking over the task of diverting waste from landfill. Its success rests on the superior managerial capacity of industry and the need to organize post-consumption markets that transcend the local scale and have access to the economies of scale and scope. The emphasis on producers does not add anything special, but may reinforce the bases for legitimizing the implicit delegation of power to industry. Primary and above all, we have witnessed in the last 20 years a gigantic effort of market design, and this is the main demonstration of EPR's success.     

Mitigation paths for Chinese iron and steel industry to tackle global climate change

Based on a recognition of the essence of climate change and the pressure on China to reduce its greenhouse gas (GHG) emissions, this paper interprets the important role that the Chinese iron and steel industry may play in managing emissions. Through an investigation of the key sources of GHG emissions in the Chinese iron and steel industry, a comparison of the current Chinese and international situations, and a survey of the technology and methods available for reducing GHG emissions, and their application in China, the authors analyze the major issues currently faced by the Chinese iron and steel industry, and propose the following four approaches through which the industry might reduce its GHG emissions: (1) encouragement of clean development mechanism (CDM) projects, mainly involving secondary energy reuse, to provide capital and technology for GHG reduction activities in China; (2) stimulation of the social responsibility-based voluntary carbon market (VCM) to increase the long-term benefits for the Chinese iron and steel industry from emission reductions; (3) undertaking of strict energy auditing to help enterprises establish appropriate emission reduction targets and formulate reasonable plans; (4) promotion of emission reduction-oriented investment within the industry to obtain profits from project operation, while at the same time gaining extra compensation for emission reductions. More specifically, the design of each of these approaches should take into consideration the related economic factors and incentive mechanisms.     

Utilising of the oiled rolling mills scale in iron ore sintering process

Up to 5% of steel is lost with the scale at hot rolling operation. This waste contains 69-72% of iron in the form of oxides. However, its recycling is confronted with presence of up to 20% of oil and 10% of water. E.g. when the oiled scale is introduced as an additive to the iron ore sintering mixture, incomplete combustion of liberated oil at heating during sintering process creates problems for gas cleaning and may even lead to damage of the equipment. A possibility to improve combustion of the scale's oil at the sintering process by preparation of a mixture with peat was shown in the laboratory experiments. Industrial trials demonstrate possibility to increase the oil combustion degree at sintering 2.7 times as much. Consumption of the oiled scale was increased from zero to 12.8 kg (in a form of scale-peat blend) per ton of sinter, which allows for closing the loop of this waste at the integrated steelmaking factory.     

Engaging Economic Development Agencies in Environmental Protection: the case for embedded autonomy

This article examines the role of economic development agencies in strengthening the environmental performance of industry within rapidly industrialising East Asian economies. Three case-study examples are considered, namely, the role of the Industrial Development Board in reducing industrial pollution in Taiwan, pollution control in the palm oil industry in Malaysia, and the role of the Economic Development Board in influencing environmental performance of industry in Singapore. The concept of embedded autonomy is developed to consider the ways in which agencies of economic development can work with firms and industries while simultaneously remaining autonomous from these firms with respect to setting and enforcing performance standards. The three cases suggest that a form of policy integration that more directly integrates economic and environmental goals within agencies of economic development may be feasible, but only where there exists a strong autonomous government bureaucracy and where there is strong societal commitment to improving the environmental performance of industry.     

Forecasting iron ore import and consumption of China using grey model optimized by particle swarm optimization algorithm

The iron and steel industry plays a fundamental role in a country's national economy, especially in developing countries. China is the largest iron ore consumption market in the world. However, because of limited domestic iron ore resources, a large proportion of iron ore is imported from other countries. Faced with the conflict between the iron ore supply shortage and the growing demand, it is necessary for the government to predict imports and total consumption. This paper develops a high-precision hybrid model based on grey prediction and rolling mechanism optimized by particle swarm optimization algorithm. We use the China Statistical Yearbook (1996–2011) as our database to test the efficiency and accuracy of the proposed method. According to the experimental results, the proposed new method clearly can improve the prediction accuracy of the original grey model. Future projections have also been done for iron ore imports and total consumption in China in the next five years.     

The influence of iron flow on iron resource efficiency in the steel manufacturing process

An iron resource efficiency is proposed to define a measure of the natural iron resources saved in the steel manufacturing process. A simplified iron flow diagram is presented for the steel manufacturing process. The influences of various deviations in iron flow from the simplified iron flow diagram on iron resource efficiency are analyzed. The relationships between iron resource efficiency of unit processes and the final product are also discussed. As an example, data from a steel plant are used to analyze the influence of iron flow on its iron resource efficiency of finial product in the steel manufacturing process, the influence of iron resource efficiency of unit process on iron resource efficiency of the final product, and give some measures to improve the iron resource efficiency of the steel manufacturing process.     

Mining during the next 25 years: issues and challenges

This article examines possible future trends in the mining industry in the light of past developments. After a preliminary discussion, the article considers various aspects of demand, supply, corporate structures, geographic distribution of investment, and social and environmental factors influencing the minerals industry. Scepticism is expressed about the smooth, exponential growth envisaged by many commentators. Some risks are elaborated, and a digression about gold is included.
The article argues that, while the minerals industry has concentrated on reducing cash costs through technical innovation and productivity improvement, new approaches may be needed in future that are not directly linked to economies of scale. Contracting out is an interesting trend with major implications.
The view that the mineral industry's corporate structure is becoming increasingly concentrated is challenged. Developments in consumer countries as well as historical precedents strongly suggest a more diverse structure.
The spread of minerals investment from North America and Australasia, and the resurgence of foreign direct investment in minerals projects, are placed in context and discussed from the viewpoints of both companies and host countries.
Although the appropriate responses to many of these issues can only properly be made by governments at all levels, the industry has to play its part.     

The USSR, China, India and the world metals industry to 2010

Remarkable changes are occurring within the economies of the USSR, China and India that are influencing mineral industry activities. These three countries account for a major share of world minerals production and consumption. Their domestic reforms may ultimately have a serious impact on the global mining industry. This paper examines the present status of the Soviet, Chinese and Indian mineral industries, and forecasts conditions to 2010. Long-term characteristics analysed include industrial production, intensity of use, consumption, mine and plant expansion and trade policy. Six metals are highlighted in the study – aluminium, copper, lead, nickel, steel and zinc.     

我国文化和旅游产业融合效率的时空动态演化及其驱动机理

采用仁慈型交叉DEA效率模型、冷热点分析、Tobit模型等方法对2010—2019年我国文化产业和旅游产业融合效率的时空动态演化及驱动机理进行了全面探析,结果发现:①2010—2019年我国文化产业和旅游产业融合效率呈波动上升趋势。②研究期内,文化和旅游产业融合效率呈“东部—中部—西部”依次递减,而融合效率增长率呈“东部—西部—中部”依次递减,但融合增长率都不高。③研究期内,文化产业和旅游产业融合效率呈区域差异性和集聚性。④从文化和旅游产业融合效率驱动机制剖析来看,经济发展、居民消费水平、地区城市化水平、信息发达程度、创新能力、政府政策支持力度是我国文化和旅游产业融合效率的驱动因素,促使效率时空动态演化。     

Seaborne iron ore trade in the 1990s

This paper discusses how world steel production and seaborne iron ore trade have grown since 1950. The role of steel production forecasts in determining investment in the iron ore industry is examined. Forecasts for world steel production and the demand and supply of seaborne iron ore in the 1990s are presented. It is predicted that world steel production will increase by 64 million tons between 1991 and 2000. This increase will be located principally in the developing countries and China. The corresponding increase in seaborne iron ore trade will be approximately 55 million tons. Expansion projects will be located mainly in Australia and Brazil, but no greenfield iron ore projects will be undertaken. By the end of the decade, the demand for seaborne iron ore will be equal to its supply.