According to National Bureau of Statistics, China’s – world’s largest iron ore consumer and importer,- Crude iron ore production is down in H1CY’18 by 38% to 390.57MnT against 633.37MnT in the same period last year 2017.
On Yearly basis, China has produced 65.5MnT in Jun’18 down sharply by 47% against 124.69MnT in Jun’17.
China crude iron ore production has also down by 3% M-o-M in Jun’18 compared to 67.25MnT in May’18.
Monthly average spot iron ore prices stable in Jun’18 -:
Average global iron ore fines (Fe 62%) prices are stable to USD66/MT in Jun’18 in line with the last month average prices.
Reason for Significant decline in Iron ore production-:
1. Revoking iron ore licenses-: Due to imposed strict govt. regulation to control smog related problems. China has started revoking a decent number of iron ore mines licenses in Oct’17. Miners are forced to upgrade the mining process to match the guidelines given by the China govt.
2. Unveiled further Production cuts-: In that process, they have further imposed production cuts in Tangshan (Northern China), resulted Steel mills owner prefers low alumina high-grade raw material.
As per figures released by National Bureau of Statistics (NBS), China has produced 1.23BnT of crude iron ore (Run-of-Mine) in CY’17, up 7.1 % as against CY’16.
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