Understanding the adjustment of the iron ore market to China’s demand shock
China’s rapid economic rise and associated demand for steel placed significant and unexpected strain on the global iron ore market. Despite the importance of iron ore to many developed and developing economies, little research has looked at how the growth of the Chinese steel industry has impacted the organisation and structure of the global iron ore market.
In this seminar Luke Hurst will introduce a framework to understand how a dry bulk commodity market, such as iron ore, would be expected to adjust to a major demand shock along with the consequences of the adjustment for industry participants. The framework will provide a baseline to assess the validity of concerns raised by industry stakeholders about the competitiveness of the iron ore market adjustment in response to China’s demand shock.