Analysis on the Influence Factors and Fluctuation of Iron Ore Price Based on Oligopoly Market

Abstract

In this paper, we use factor analysis and VAR model, established the dynamic relationship between the price of iron ore and output, inventory, shipping cost, GDP. By using factor analysis, three common factors were extracted, and we discusse the common factor for iron ore price impact and the rule. The empirical analysis shows that the supply factors have a negative impact on the current prices; demand factors influences iron ore prices are relatively large which has a positive impact in the first phase of the price; Financial factors have a negative impact on the price of the current period, and the effects of the three factors are gradually disappearing.