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Commodity price exposures of Chinese steel producers

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thesis
posted on 28.03.2022, 00:46 by Evonne Hui Yu
Important financial risks facing Chinese steel producers include steel, iron ore and coking coal price risks. This thesis estimates the exposures to these financial risks for 31 publicly listed Chinese steel producers between 2008 and 2015. Furthermore, this thesis investigates the impact of a regime shift from long-term to short-term pricing contracts on iron ore exposures. Iron ore prices have become increasingly volatile since this regime shift. Steel producers are expected to be exposed to iron ore prices, one of the key inputs for steelmaking. As the world’s largest group of steel producers, Chinese steel producers rely heavily on iron ore imports, due to the undersupply of high quality iron ore from the Chinese domestic region. This study examines the commodity price exposures facing Chinese steel producers. In particular, it investigates their exposures to iron ore prices and how these exposures have changed since the iron ore pricing regime shift in 2010. The study finds that Chinese steel producers are in general positively exposed to steel priceand negatively exposed to iron ore price, but natural hedge exists between iron ore andsteel. In addition, the impact of regime shift on iron exposures only becomes significant when longer horizon data are analysed.

History

Table of Contents

Chapter 1. Introduction -- Chapter 2. Background -- Chapter 3. Prior research and hypotheses development -- Chapter 4. Data and methods -- Chapter 5. Results -- Chapter 6. Conclusion -- References -- Appendices.

Notes

Theoretical thesis. Bibliography: pages 62-65

Awarding Institution

Macquarie University

Degree Type

Thesis MRes

Degree

MRes, Macquarie University, Faculty of Business and Economics, Department of Applied Finance and Actuarial Studies

Department, Centre or School

Department of Applied Finance and Actuarial Studies

Year of Award

2016

Principal Supervisor

Shane Magee

Rights

Copyright Evonne Hui Yu 2016. Copyright disclaimer: http://mq.edu.au/library/copyright

Language

English

Jurisdiction

China

Extent

1 online resource (ix, iv, 67 pages) graphs, tables

Former Identifiers

mq:68796 http://hdl.handle.net/1959.14/1247818