China, the world’s largest iron ore consumer produced around 114.7 MnT ROM (Run-of-mine) in Jul’17. Crude iron ore production was decreased by 8% M-o-M even when the steelmaking raw material prices are on the rise.
There was a slowdown of 1% Y-o-Y as well compared with month of Jul’16 where the production was 115.7 MnT then.
The total volume of crude iron ore production in the seven months of 2017 was registered at 715.5 MnT, up by 6% Y-o-Y as it was 711 MnT in the same period last year.
Global iron ore prices were up last month. In Jul’17, the monthly average iron ore prices for Fe 62% Australian fines rose by USD 10/MT and were registered at USD 67/MT CFR China against USD 57/MT, CFR China in Jun’17.
Meanwhile, Chinese iron ore imports were also down by 9% in Jul’17 at 86.25 MnT iron ore against 94.7 MnT in Jun’17. The country imported 625.75 MnT iron ore in the first seven months of 2017, which was higher by 8% Y-o-Y. The country imported 582 MnT iron ore during the same period in 2016.
The global iron ore prices have been growing steadily for since the end of Jun’17 after falling below USD 60/MT, CFR China in the end of May this year. The rising inventories at Chinese ports are a matter of concern as the scrap replaces the traditional feeder.
The preference for the pellets and scrap over iron ore by the Chinese steel manufactures is driving the global market currently. 
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