Posted on 27 Sep 2021
China’s run-of-mine (ROM) iron ore output grew by 5% on-month in August to around 83.9 million tonnes, recovering from the dip in July, the latest data released by the country’s National Bureau of Statistics (NBS) show, with the volume also being 5.6% higher on year.
Consequently, over January-August China produced 658.4 million tonnes of ROM iron ore, higher on year but slightly more slowly at 14.2% than the 14.5% on-year gain for this year’s first seven months, according to the data.
In August, ROM iron ore output from China’s core production bases all recorded increases, with the volume from North China’s Hebei, for example, rising by 4% on month to 33.98 million tonnes, while production from Liaoning in Northeast China was up 2.5% on month at 12 million tonnes. Output in Shandong in East China posted a more marked on-month increase, jumping by 20.4% to 2.34 million tonnes, according to the data.
Last month also saw ROM iron ore output from North China’s Shanxi rise by 8.5% on month to around 4 million tonnes.
The uptick in ROM iron ore output matched Mysteel’s survey of domestic iron ore concentrates output from the 332 domestic miners Mysteel samples, though their total output had increased by only 0.6% on month to 22.67 million tonnes in August, with the volume being still 6.7% lower on year. The concentrates output over January-August reached 181.39 million tonnes, higher by 2.4% on year, as against the 3.8% rise for the first seven months.
Last month, even though the growth in supplies domestic concentrates was rather limited, prices nonetheless started to soften in August. Demand from domestic steelmakers had declined amid the strengthened nationwide steel production curbs over the month. Meanwhile, prices of imported iron ore had plunged further in August, Mysteel Global noted.
Mysteel’s other data showed that the iron ore concentrate stocks held by the 186 mining companies regularly sampled had mounted for the second survey period over August 27-September 9, with the volume swelling by 2.7% over the two weeks to 1.5 million tonnes, the highest since April 22.
By August 30, Mysteel’s price assessment of the 66% Fe domestic iron ore concentrates in Tangshan, Hebei province, had recorded its first on-month dip after rallying since April, with the price losing Yuan 250/dmt ($38.7/dmt) on month to Yuan 1,350/dmt EXW and including the 13% VAT.
During the month, Mysteel SEADEX 62% Australian Fines slumped further by $28.65/dmt on month to $151.55/dmt CFR Qingdao by August 30.
Source:Mysteel Global
