Capacity Utilisation Rate of Iron Ore Mines in Guangdong Soared in Feb, Will Have Upside Room in Mar

SHANGHAI, Mar 8 (SMM) – In February, the capacity capacity utilisation rate of mines in Guangdong soared month-on-month. Driven by the rise in the price of imported ores, the price of local concentrates rose by 50-60 yuan/mt at the end of February compared with the end of January. This prompted mines to produce aggressively.

The output of concentrates by a private mining company increased to 80,000 mt in February, a 60% increase from the 50,000 mt in January; another private mining company produced a total of 34,000 mt of concentrates in February, a slight increase from the 32,000 mt in January.

The slow transportation of imported ore boosted demand for domestic concentrates, and many mines had no concentrates inventory.

Entering March, driven by improved demand and high ore prices, the enthusiasm for local mine production will remain strong. Meanwhile, no special restrictions on explosives were implemented by the government during the two political sessions to ensure economic development. As such, the local mine capacity utilisation rate in March will have upside room.