According to National Bureau of Statistics, China – world’s largest iron ore consumer and importer of iron ore has witnessed crude iron ore production (ROM) at 68.82 MnT in Oct’18, up 3% as against 66.93 MnT in Sep’18. The preference for iron ore fines over pellet has increased amidst less severe winter production cuts by Chinese government this year.
Chinese mills are using domestic iron ore concentrate for pellet making amid less stringent measure imposed on mines and mills.
On yearly basis, crude iron ore production declined by 43% compared to 120.07 MnT in Oct’17.
China’s production for the duration Jan-Oct’18 witnessed at 655.74 MnT down 41% as against same duration previous year (Jan-Oct’17) at 1102.72 MnT. China’s iron ore production dropped amidst closure of mines. Due to imposed strict govt. regulation last year, China started revoking a decent number of iron ore mines licenses in Oct’17. Besides, it announced cancellation of about one third of country’s iron ore mining licences, effecting about 1000 mines.
According to Fitch, China’s iron ore production is expected to drop down from 1.29 BnT this year to 1.25 BnT by 2027, with expected rise in preference for high grade ore amidst country’s tightening environmental standards.
Monthly Average global iron ore fines prices increased 7% M-o-M
Monthly average global iron ore fines (Fe 62%) prices in Oct’18 recorded at USD 73/MT, CFR China, up by 7% on monthly basis as against Sep’18 price at USD 68/MT, CFR China.
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