| As the most important raw material for steel,iron ore plays a very important role in the sustainable development of national economy.The cost of iron ore is about 40%of the total cost of steel,its price directly affects the cost and profit of steel products.The iron and steel industry also plays a very important role in the national economy.It is an important wind vane to measure the national economic development and industrialization level.At present,China’s iron ore import volume and steel output are both first place in the world.The fluctuation of iron ore price will affect the cost of the steel industry,and then affect the price of steel products.In this context,it is of great strategic significance to study the impact of the international price fluctuation of "iron ore" on the domestic steel price,which can provide a theoretical reference for the iron and steel industry to deal with the price fluctuation of the international iron ore market.Specifically,this paper empirically investigates the impact of iron ore price fluctuation on China’s steel price based on the daily index of China’s common steel price and international iron ore Platts price.In addition,the exchange rate of RMB against the US dollar,the level of economic development(GDP),the Manufacturing Purchasing Manager Index(PMI)and the steel output of domestic steel enterprises are also taken into consideration.The research shows that there is a significant positive correlation between the international iron ore price and the general steel price index.At the same time,the international iron ore price and the exchange rate of RMB against the US dollar have a significant impact on the domestic steel price.Furthermore,in expanding the analysis part,this paper takes into account the impact of COVID-19 shocks on the above price Association.For the settlement before and after the outbreak,the relationship between international iron ore price and general steel price index was investigated respectively to verify the applicability of the above economic laws in different sub models.The study found that the impact of international iron ore price and exchange rate on the price index of steel was significant before and after the epidemic.At the same time,the import price of iron ore with the influence of trade factors is taken into account,and its impact on the price index of ordinary steel is analyzed.There is a significant correlation between the two variables.Finally,based on the above analysis,this paper puts forward targeted policy suggestions from the perspectives of iron ore pricing,domestic iron ore technology promotion,international iron ore resource cooperation,exchange rate risk control and structural reform of iron and steel enterprises. |
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