China’s the world’s largest iron ore consumer, produced around 121.1 MnT ROM (run-of-mine) in June’16. Crude ore production was around 111 MnT in the month of May’16.
In June’16, production was up by 9% M-o-M. Whereas, on a Y-o-Y basis , crude ore production was down by 5% as it was around 128 MnT in Jun’16.
The total volume of crude ore production in the H1 2016 was registered at 594 MnT, down by 5.2% Y-o-Y as it was 627 MnT in the same time frame mentioned prior this year.
On yearly basis crude ore production continues to shrink as country’s steel mills are relying more on imported material rather than domestic ore.
Apparently, China’s iron ore imports in Jun’16 was recorded at 81.6 MnT. On Y-o-Y basis, imports grew up by 9% in the month of June’16.
However, the country imported around 494 MnT iron ore in H1 2016, which was higher by 9% Y-o-Y. The country imported 453 MnT in iron ore in H1 CY15. This shows country’s increasing appetite for imported raw material.
Chinese mills are more interested in using imported material as their feed rather than domestic material as the higher grade imported material is available at much cheaper price than domestic ore.
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