SHANGHAI, Jun. 20 (SMM) – According to the National Bureau of Statistics, China iron ore output hit a new high for the year of 116.79 million mt in May, up 5.66% from April’s 110.53 million mt and 3.95% from a year ago. YTD output through May increased 7.55% YoY to 508 million mt.
May’s iron ore output was pushed up by a number of new medium and large mines coming online, such as Baixiangshan mine. Besides, the weather in May exerted little negative influence on operations at most domestic mines, and the upcoming rainy season prompted some mines to ramp up mining operation and built stocks for beneficiation in rainy season.
Steelease expects iron ore output to fall in June for the following reasons. First, domestic iron ore market remained sluggish although imported iron ore prices attempted to rise. Some mines with high costs, such as those in Inner Mongolia, already reported losses and adjusted production plans. Although this was not generally seen across the nation, iron ore output may be negatively affected. Second, the onset of rainy season in south China will somewhat impede production at mines, while north China will also see more rainfalls which may also pose hurdle for mining operation in Hebei and Shanxi.