A Steel Price Index Model and Its Empirical Research

Although the steel price index plays a key role in finding price of steel, guiding and stabilizing the market, China still lacks a scientific, complete and rigorous steel price index. This paper firstly built the steel price index system, which considered different regions, steel products, materials and specifications. The index system consists of two index series and eight indexes. Then a calculation model of steel price index based on the Laspeyres method was constructed. Finally, an empirical analysis showed that the steel price index well reflected the price fluctuation and the predictive ability of price in the steel market.