The main transmission paths of price fluctuations for tungsten products along the industry chain

Abstract

Tungsten is deemed a critical raw material by many nations, given its irreplaceable use in industrial and military applications. In particular, China has high share of global tungsten supply. In this research, we study the tungsten product price fluctuation transmission of trade activities between China domestic market and international trade market from the industry chain perspective. Specifically, we embed the Chinese domestic market into the international trade market to construct price fluctuation transmission network (network-in-network) in tungsten industry chain. Drawing on the analysis ideas of the input-output price impact model, the total transmission impact of the tungsten product price fluctuation is revealed. We then combine the structural path decomposition method and the network cascade theory to identify the main transmission path of tungsten product price fluctuation. The results show that the total transmission impact of price fluctuation between the international trade relationships of cemented carbide in the tungsten industry chain is large. The cumulative transmission of the 3-step price fluctuation transmission paths of tungsten products between the Chinese domestic market and the international trade market accounts for more than 80% of the total transmission. The main transmission path of price fluctuations in the tungsten industry chain exists in the same product. Our research will provide effective information for governments to develop measures to control price fluctuation, thereby minimizing the losses from price fluctuation and transmission.