China, the world’s largest iron ore consumer, produced around 115.7 MnT ROM (run-of-mine) in Jul’16. Crude ore production was around 121.1 MnT in the month of Jun’16.
China’s crude iron ore production significantly dropped in Jul’16 though iron ore imports in China continues to rise amid higher prices in global market.
In Jul’16, production was down by 4.4% M-o-M. Whereas, on a Y-o-Y basis , crude ore production was down by 8% as it was around 126 MnT in Jun’15.
The total volume of crude ore production in first seven months of 2016 was registered at 709.7 MnT, down by 5.7% Y-o-Y as it was 753 MnT in the same time frame 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 Jul’16 was recorded at 88.4 MnT, highest of 2016. On Y-o-Y basis, imports grew up by 3% in the month of Jul’16.
However, the country imported around 582 MnT iron ore in first seven months of 2016, which was higher by 8% Y-o-Y. The country imported 539.1 MnT in iron ore in first seven months of 2015. 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.
Leave a Reply