Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality Networks
Nickel is a strategic mineral resource, with 65% of nickel being used in stainless steel. The situation in Ukraine starting in February 2022 has led to significant fluctuations in nickel prices, with prices of nickel products along the same chain affecting and passing through each other. Using syste...
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| Format: | Article |
| Language: | English |
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MDPI AG
2022-08-01
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| Series: | Entropy |
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| Online Access: | https://www.mdpi.com/1099-4300/24/9/1221 |
| _version_ | 1797488682986373120 |
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| author | Xuanru Zhou Shuxian Zheng Hua Zhang Qunyi Liu Wanli Xing Xiaotong Li Yawen Han Pei Zhao |
| author_facet | Xuanru Zhou Shuxian Zheng Hua Zhang Qunyi Liu Wanli Xing Xiaotong Li Yawen Han Pei Zhao |
| author_sort | Xuanru Zhou |
| collection | DOAJ |
| description | Nickel is a strategic mineral resource, with 65% of nickel being used in stainless steel. The situation in Ukraine starting in February 2022 has led to significant fluctuations in nickel prices, with prices of nickel products along the same chain affecting and passing through each other. Using systematic risk entropy and granger causality networks, we measure the volatility risk of trade prices of nickel products using the nickel industry chain trade data from 2000–2019 and explore the transmission patterns of different volatility risk prices from the industry chain perspective. The findings show that: (1) Nickel ore has the highest risk of import trade price volatility and a strong influence, but low risk transmission. Stainless steel has the highest trade price impact but is also subject to the strongest passive influence. (2) The Americas have a higher risk of trade price volatility but a weaker influence. The influence and sensitivity of trade prices is stronger in Asia and Europe. (3) Indonesia’s stainless steel export prices have a high rate of transmission and strong influence. Germany’s ferronickel export prices are highly susceptible to external influences and can continue to spread loudly. Russian nickel ore export prices are able to quickly spread their impact to other regions. |
| first_indexed | 2024-03-10T00:06:46Z |
| format | Article |
| id | doaj.art-f0a8c1134f5349ce889eae572ac3af6c |
| institution | Directory Open Access Journal |
| issn | 1099-4300 |
| language | English |
| last_indexed | 2024-03-10T00:06:46Z |
| publishDate | 2022-08-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Entropy |
| spelling | doaj.art-f0a8c1134f5349ce889eae572ac3af6c2023-11-23T16:08:00ZengMDPI AGEntropy1099-43002022-08-01249122110.3390/e24091221Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality NetworksXuanru Zhou0Shuxian Zheng1Hua Zhang2Qunyi Liu3Wanli Xing4Xiaotong Li5Yawen Han6Pei Zhao7Institute of Mineral Resources, Chinese Academy of Geological Sciences, Beijing 100037, ChinaSchool of Management, China University of Mining and Technology, Beijing 100083, ChinaSchool of Economics and Management, China University of Geosciences, Beijing 100083, ChinaInstitute of Mineral Resources, Chinese Academy of Geological Sciences, Beijing 100037, ChinaDevelopment Research Center of China Geological Survey, Beijing 100037, ChinaSchool of Economics and Management, China University of Geosciences, Beijing 100083, ChinaSchool of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, ChinaTeacher’s College, Beijing Union University, No. 5 Waiguan Oblique Street, Chaoyang District, Beijing 100011, ChinaNickel is a strategic mineral resource, with 65% of nickel being used in stainless steel. The situation in Ukraine starting in February 2022 has led to significant fluctuations in nickel prices, with prices of nickel products along the same chain affecting and passing through each other. Using systematic risk entropy and granger causality networks, we measure the volatility risk of trade prices of nickel products using the nickel industry chain trade data from 2000–2019 and explore the transmission patterns of different volatility risk prices from the industry chain perspective. The findings show that: (1) Nickel ore has the highest risk of import trade price volatility and a strong influence, but low risk transmission. Stainless steel has the highest trade price impact but is also subject to the strongest passive influence. (2) The Americas have a higher risk of trade price volatility but a weaker influence. The influence and sensitivity of trade prices is stronger in Asia and Europe. (3) Indonesia’s stainless steel export prices have a high rate of transmission and strong influence. Germany’s ferronickel export prices are highly susceptible to external influences and can continue to spread loudly. Russian nickel ore export prices are able to quickly spread their impact to other regions.https://www.mdpi.com/1099-4300/24/9/1221nickel industry chaintrade pricesgranger causality networkssystemic risk entropy |
| spellingShingle | Xuanru Zhou Shuxian Zheng Hua Zhang Qunyi Liu Wanli Xing Xiaotong Li Yawen Han Pei Zhao Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality Networks Entropy nickel industry chain trade prices granger causality networks systemic risk entropy |
| title | Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality Networks |
| title_full | Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality Networks |
| title_fullStr | Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality Networks |
| title_full_unstemmed | Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality Networks |
| title_short | Risk Transmission of Trade Price Fluctuations from a Nickel Chain Perspective: Based on Systematic Risk Entropy and Granger Causality Networks |
| title_sort | risk transmission of trade price fluctuations from a nickel chain perspective based on systematic risk entropy and granger causality networks |
| topic | nickel industry chain trade prices granger causality networks systemic risk entropy |
| url | https://www.mdpi.com/1099-4300/24/9/1221 |
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