Abstract
The iron ore buying patterns of Japanese steel mills were examined based on a partial adjustment model. The analysis showed that, as a result of Japan's supply diversification policy, import costs were not a significant factor in determining market shares among major iron ore suppliers, including Australia, Canada and India. Specifically, Australia's share of Japanese iron ore imports had remained stable and was affected neither by changes in Japanese total imports nor by changes in relative import costs. In contrast, Brazil's market share was affected by changes in Japanese total imports only, while India's market share was affected by changes in relative import costs only. However, with increasing competition in the steel market and security of iron ore supply largely assured, import costs can be expected to play a greater role in determining future market shares of the major supplying countries.
Published Version
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