The temporary production suspensions at iron ore mining companies and beneficiation plants in Tangshan’s Qian’an city in North China’s Hebei province, ended on March 12 with the firms affected beginning to crank up operations, Mysteel Global has learned. Those in Tangshan’s Qianxi city have also gradually resumed production recently, a market source said on Thursday.
Earlier this month local authorities in Qian’an, a county-level city under Tangshan’s control, had issued a notice regarding managing the resumption of work, stating that local mining and concentrates processing companies should report to the government for reinstatement, and that production could be resumed once government approval had been obtained. By March 11, most had obtained the required local government permission and were preparing to reopen from Thursday, Mysteel has learned.
A Tangshan-based market insider confirmed hearing that miners and beneficiation plants in Qian’an were permitted to return to work from Thursday and that companies in Qianxi, another county-level city of Tangshan’s, have also resumed production.
Qian’an and Qianxi were among three cities requested by Tangshan to ensure that most iron ore miners and individual beneficiation plants suspended operations starting February 13 as part of enhanced efforts to fight COVID-19, as Mysteel Global reported. Companies in the third city, Zunhua, had already resumed work since February 22, as the outbreak in that city appeared to have been contained earlier.
Among the three areas, daily concentrates output in Qian’an is the largest at 27,300 tonnes/day under regular production, followed by Zunhua and Qianxi, each normally producing 18,200 t/d and 7,600 t/d. The three account for about 70% of Tangshan’s total ore concentrates output, Mysteel Global understands.
From February 13 to February 26 when businesses were ordered suspended, the latest survey of Tangshan operations found that concentrates output in the three regions had plunged by 34,900 t/d, or accounting for 94% of the total decrease in Tangshan’s output, as reported. Meanwhile, the daily output of iron ore concentrates across all Tangshan at that time declined by around 37,100 tonnes/day or by nearly 50% of normal levels to 37,200 t/d.
Because of the tight supplies, concentrate prices in Tangshan firmed to a new high level, with those for 66% concs setting at Yuan 835/dmt ($119.6) EXW and including 13% VAT as of March 12, returning to same price as on January 23, the last day prior to the start of the Chinese New Year holiday over January 24-February 2, Mysteel’s database showed.
This article has been published under an article exchange agreement between Mysteel Global and SteelMint.
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