China, the world’s largest iron ore consumer produced around 115.1 MnT ROM (Run-of-mine) in Aug’16. Crude iron ore production was around 115.7 MnT in Jul’16.
China’s crude iron ore production fell slightly by 0.5% in Aug’16 M-o-M. Though iron ore import to China continued to increase and was recorded at 87.7 MnT in August, the third highest ever volume.
On Y-o-Y basis, crude ore production was down by 7.1% as it was 124 MnT in Aug’15.
The total volume of crude ore production in the first eight months of 2016 was registered at 824.8 MnT, significantly down by 6% Y-o-Y as it was 877 MnT in the same period prior this year.
The continuous shrinking of crude iron ore production gives a clear indication that Chinese steel mills are relying more on imported ore.
The country imported 669.7 MnT iron ore in the first seven months of 2016, which was higher by 9.2% Y-o-Y. The country imported 613.2 MnT iron ore during the same period in 2015, which shows country’s increasing appetite for imported raw material
The fall in domestic crude ore production against increasing imports is a matter of concern for global iron ore prices. If China continues to increase imports in coming time, global iron ore prices may not sustain at higher prices.
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