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

RESOURCES CONSERVATION AND RECYCLING(2023)

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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 rec-ommendations, such as circular economy and material substitutions are proposed to help improve resource ef-ficiency and reduce the vulnerability of critical sectors from dependence on iron and steel.
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Key words
Iron, Critical metals, Economic vulnerability, Criticality, Input-output analysis, China
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