The Global Iron and Steel Industry: From a Bilateral Oligopoly to a Thwarted Monopsony

Abstract China's growing urbanisation and the speed of development of its manufacturing industry has led to a shock in steel demand. This article analyses the evolution of the market structure and the related market power shift. From a stable situation in which a few steelmakers negotiated with a few mining firms to set an annual price, the market has evolved to a new price‐fixing regime as a result of supply–demand confrontation. A new composition of stakeholders in the iron and steel sectors has emerged, transitioning from an oligopoly to a thwarted monopsony.