Capacity Utilisation Rates of Iron Ore Mines in Fujian Drop in March, and to Stabilise in April

SHANGHAI, Apr 10 (SMM) – In March, the capacity utilisation rates of mines in Fujian fell slightly month-on-month, mainly because the output of one state-owned mine dropped from more than 20,000 mt in February to 20,000 mt in March. Most state-owned mines maintained normal production amid largely stable iron ore prices. The concentration ratio of some mines rose from 2.3-2.4 two years ago to the current 2.7, causing their costs to increase. Yet, they still made profits of 200 yuan/mt thanks to high iron ore prices.

The capacity utilisation rates of private mines increased slightly month-on-month as strong demand from steel mills encouraged mines to ramp up their production.

It is expected that the capacity utilisation rates of mines in Fujian will remain at the current level in April as rainy weather in many parts of south China will hamper production ramp-up.