Based on material flow analysis: Value chain analysis of China iron resources

•The value circulating of iron resources can bring considerable economic benefits to both producers and consumers.•In the production stage, the whole economic system cut down the expenditure by 91.77 billion RMB due to circulating iron.•In the same stage, the whole economic system increased the income by 95 billion RMB because of the recycling of new scrap.•In the use stage, the recycling of old scrap made the whole economic system recover 370.78 billion RMB. Iron is an important basic resource for national economic development in China. It is of great strategic importance for the sustainable development of China's economy to study the utilization and circulation status of iron resources. In this paper, using the material flow and value chain analysis method, we quantitatively analyzed the value flow of iron resources in China. According to the value chain and price theory of element M, a value stream diagram of iron resources corresponding to the substance flow chart was plotted. Based on the previous material flow analysis result of iron resources, the diagram quantitatively depicted the value of the circulating flow of iron resources in China in 2011. The results show that by recycling materials, the value of the circulating flow of iron resources can bring considerable economic benefits to both producers and consumers. In the production stage, the expenditures of the entire economic system was reduced by 91.77 billion RMB by circulating iron and the income increased by 95 billion RMB by recycling home scrap, which was generated in the crude steel production stage. In the use stage of iron and steel products, the recycling of old scrap enabled the entire economic system to recover 370.78 billion RMB. It should be noted that analysis within a single framework of physical and economic characteristics of iron resources in the economic system can further extend the research chain of substance flow and value flow at the macro level, enhancing the economic value of substances flow research. In addition, by tracking and depicting the value flow cycle of elements, the improvement potentials and the value situations can be determined to provide useful information for conducting processing and technological innovation for waste minimization.