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Home / Metal News / China Jun. ROM Production Data Questionable, SMM Survey Finds

China Jun. ROM Production Data Questionable, SMM Survey Finds

iconJul 23, 2014 10:39
Steelease, Shanghai Metals Market’s ferrous branch, finds that China’s June ROM output questionable due to the fall in operating rate over the month.

SHANGHAI, Jul. 23 (SMM) – Steelease, Shanghai Metals Market’s ferrous branch, finds that China’s June ROM output questionable due to the fall in operating rate over the month. 

China’s ROM output was 139 million tonnes in June, up 5.6% from May and 7.8% from a year ago, China Metallurgical News reported.   

The 5.6% monthly increase in output was hardly plausible as utilization rate at domestic beneficiation plants slid to 58.5% in June, down 2.6 percentage points from May and 8.8 percentage points from a year ago. The average operating rate at Chinese private mines also fell by 4.7 percentage points to 50.46% in June, Steelease survey showed. 
 
Besides, the ROM grade is estimated at 9.9% based on data from NBS and China Customs, which is much lower than the 26% average grade covered by Steelease survey of 300 mines. 
 
Moreover, there are only modest increases in new mine capacity expansions this year, giving little support to high output for the month.  
 
The current sluggish market is expected to continue to push down average operating rate at domestic mines in July, Steelease foresees.  
 
China iron ore output
Steelease survey
Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market exchanges, and relying on SMM's internal database model, for reference only and do not constitute decision-making recommendations.

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