According to the National Bureau of Statistics, China – the world’s largest consumer and importer of iron ore has witnessed crude iron ore production at 78.05 MnT in Oct’19, stable on monthly basis as against 77.4 MnT in Sep’19. The production remained on lower side amid thinning demand due to additional production curbs.
On yearly basis, output increased 13% as compared to 68.82 MnT in Oct’18.
For CY19 (Jan-Oct), crude iron ore production recorded at 704.47 MnT, up 7% as against 655.73 MnT in CY18 (Jan-Oct).
China iron ore imports down 7% in Oct’19
China iron ore and pellet imports recorded at 92.86 MnT in Oct’19. The imports witnessed 7% fall on monthly basis compared to 99.36 MnT in Sep’19. The decline in imports is attributed to falling demand amid rising output curbs and shrinking steel margins. Chinese mills witnessed week long holidays (1st Oct to 7th Oct) leading to drop in imports. Also, China’s top steelmaking city of Tangshan issued second level pollution alert in Oct affecting production further. Besides, towards early Oct’19 mills in Tangshan were ordered to reduce sintering, pelletizing and blast furnace operations from Oct. 10 until Oct. 31.
Average global iron ore fines prices decline in Oct’19
The spot iron ore fines (Fe 62%) index price for Oct’19 stood at USD 89/MT, CFR China against Sep’19 index price at USD 93/MT, CFR China.
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