Study On The Sustainable Development Of Hebei Steel Industry In The Iron Ore Resource Constraints

As a resource-based industry, the development of steel industry needs rich iron ore, coal and other auxiliary material resources. There is a serious shortage in resource supply. Iron ore resources can not satisfy the sustainable development of Hebei steel industry either in quantity or in quality. Under the iron ore resource constraints, the study on the sustainable development of Hebei steel industry has important theoretical and practical significance. If the high dependence on imported iron ore of steel industry directly translates into production capability rather than buffer reserve, the changes of international iron ore market will directly affect the current capacity of Hebei and even the nation; otherwise, it is also proved that it needs a breakthrough in theoretical research.Firstly this article defines related concepts and theories, then it analyzes the present situation of Hebei steel industry from the reorganization of the steel industry, the geographical distribution, the number and types of products, industrial trade and economic benefits, etc. The output of Hebei steel products grows by 10 times in the last ten years; the total profit shows a growth trend, but slowdown in 2007; trade competitiveness index of steel products remains at over 0.80 in the nearly four years. And then this article analyzes the iron ore resource constraints of steel industry in Hebei from the distribution of iron ore resources, resource production, import dependency and other point of view. Iron ore resource constraints have become the main factor which restricts sustainable development of Hebei steel industry. Some problems, such as lower grade, limited recoverable reserves, higher import dependence and larger price increase, have become more and more obvious.By then it analyzes the impacts of iron ore price fluctuation on Hebei steel industry, constructing VAR model and using methods of impulse response function and variance decomposition. The results show that: there exists long-term equilibrium relationship between iron ore price, steel output and industrial added value of steel. Iron ore price is the Granger cause of industrial added value of steel. The impacts of iron ore price fluctuation on Hebei steel production and industrial added value have stabilized at more than 7% and 10%, and have an increasing trend. In the context of higher import dependency, iron ore price fluctuation reflects the supply and demand changes of domestic and international market. If we put the appropriate mining of domestic iron ore as an assumption, the stable international iron ore supply will be long constraint of iron ore price stability, and even the output and economic benefits.Finally, based on the iron ore resource constraints of Hebei steel industry and empirical analysis, the article puts forward some suggestions. For example, we can solve the problem of iron ore resource constraints by avoiding over-exploitation of domestic iron ore and increasing foreign mining investment and development. We can also achieve the sustainable development of Hebei steel industry in iron ore resource constraints by adjusting the product structure, strengthening technological innovation, keeping the enterprise cluster development, developing green steel industry, etc.