Quantifying economic sectoral iron commodity use and related vulnerability in China's supply chains

Abstract

With its widespread use in manufacturing and machinery, iron is a crucial metal for modern society. However, knowledge about the economic vulnerability of iron from multiple perspectives remains unexplored, especially for China, a country responsible for more than half of global iron and steel consumption. This study aims to quantify the inter-sectoral flows of iron commodities and the caused economic vulnerabilities, using an input-output model and complex network analysis methods. Results show that the residential building construction sector was the most vulnerable sector from a direct perspective. However, the final uses of certain services (e.g., the public administration and social organizations sector and business services sector) were more vulnerable concerning supply restriction from a consumption-based perspective. Based on the above findings, policy recommendations, such as circular economy and material substitutions are proposed to help improve resource efficiency and reduce the vulnerability of critical sectors from dependence on iron and steel.