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West and Central African Iron Ore: A Lesson in the Contestability of the Iron Ore Market

Authors: Luke Hurst;

West and Central African Iron Ore: A Lesson in the Contestability of the Iron Ore Market

Abstract

The paper briefly sets out factors behind Chinese demand for iron ore imports and the main features of China’s medium term resources consumption growth path. It then outlines the potential of major iron ore export countries to meet China’s medium term iron ore import demands.The focus of the paper in on the potential of iron ore supplies from west and central Africa to enter the export market over the short and medium terms. To assess this, three export capacity scenarios (low, medium and high risk) are constructed for 17 iron ore mines (over 27 production expansion phases) in west and central Africa.The result suggest the development of west and central African iron ore has the potential to create significant downward pressure on the price of iron ore exports over the short to medium term. The impact of the excess export capacity on iron ore price is estimated and it suggests that there would be significant knock-off effects for iron ore-centric economies such as Australia and Brazil.

Keywords

iron ore, China, Africa, demand for iron ore, iron ore price, Brazil, Australia, jel: jel:O13, jel: jel:Q31, jel: jel:Q37, jel: jel:L72

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Powered by OpenAIRE graph
Found an issue? Give us feedback
selected citations
These citations are derived from selected sources.
This is an alternative to the "Influence" indicator, which also reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Citations provided by BIP!
popularity
This indicator reflects the "current" impact/attention (the "hype") of an article in the research community at large, based on the underlying citation network.
BIP!Popularity provided by BIP!
influence
This indicator reflects the overall/total impact of an article in the research community at large, based on the underlying citation network (diachronically).
BIP!Influence provided by BIP!
impulse
This indicator reflects the initial momentum of an article directly after its publication, based on the underlying citation network.
BIP!Impulse provided by BIP!
2
Average
Average
Average
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