SHANGHAI, May 16 (SMM) - In April, the capacity utilisation rates of mines in Guangdong fell month-on-month. A private mine produced 60,000 mt of iron ore concentrates in April, a decrease of 30,000 mt from March, mainly because the rainy season disrupted its mining activity. In April, iron ore prices in Guangdong rose 20 yuan/mt, leaving this mine more willing to sell. Local iron ore prices lost 160 yuan/mt after the Labour Day holiday due to falling imported ore prices. This, coupled with the rainy season, may discourage this mine from ramping up production this month. Another private mine produced about 38,000 mt of concentrates in April and barely held any inventory.
On the whole, operating rates in Guangdong may be basically flat in May as lower ore prices and the rainy season will provide no incentive to raise production.
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