China, the world’s largest iron ore consumer produced around 113.6 MnT ROM (Run-of-mine) in Mar’17. Crude iron ore production has increased by 23% M-o-M amid lowering global iron ore prices.
There was an increase of 16% Y-o-Y as well compared with month of Mar’16 where the production was 98.2 MnT then.
The total volume of crude iron ore production in the first quarter of 2017 was registered at 297.8 MnT, significantly up by 15% Y-o-Y as it was 259.2 MnT in the same period last year.
Global iron ore prices came down last month. In Mar’17, the monthly average iron ore prices for Fe 62% Australian fines moved down by USD 1/MT and was registered at USD 87/MT CFR China against USD 88.2/MT, CFR China in Feb’17.
Meanwhile, Chinese iron ore imports surged 14% in Mar’17 at 95.56 MnT iron ore against 83.49 MnT in Feb’17. The country imported 271.05 MnT iron ore in the first quarter of 2017, which was higher by 12% Y-o-Y. The country imported 241.4 MnT iron ore during the same period in 2016.
The upward expedition of the global iron ore prices is interrupted by the record high inventories at Chinese ports. Though the instability infected Chinese steel market struggles with price fluctuations, the demand for the foreign material seems unhurt.
The supply glut is still a matter of concerns in respect to falling prices.
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