SHANGHAI, Mar 1 (SMM) — Some mines did not close for CNY amid the ongoing COVID-19 situation in China. Some mines that closed for CNY resumed production earlier than in 2020. The resumption of production at domestic mines includes 3 main periods, which is February 18-21, after Feb 26 and after the plenary sessions end (March 4-5) or after the weather warms up. On the whole, the resumption of production in 2021 is better than in 2020. Affected by the pandemic, many mines were closed throughput February 2020 , and the capacity utilisation rate was at a historical low of 51%.
Mines in the Hanxing area of Hebei generally suspend production before CNY and resume production after the plenary sessions. According to SMM survey, the mines in the Hanxing area have not yet resumed production, and are expected to resume production after the plenary sessions.
The Shandong Emergency Management Department carried out a safety inspection of underground non-coal mines in Shandong Province on February 17 in the wake of an explosion at an underground gold mine in January. The inspection is expected to end at the end of March. According to the SMM survey, most of the mines in Shandong are underground mines. The inspection had a greater impact on mines in southern Shandong than those in central Shandong. Mines in southern Shandong have basically ceased production for rectification. Only large mines in central Shandong are still in production, while the small mines have ceased production. According to local mines and traders, the current supply in Shandong sufficient, but the supply may drop sharply after 15 days. According to SMM statistics, Shandong's iron ore concentrate production in January was at 1.27 million mt.
In Shanxi, a small number of mines that suspended or reduced production during CNY have resumed production from February 21, but most of them will not resume production until after February 26. Usually, supply will not fully recover until after the end of March.
Some mines in north China will not resume production until after March due to low temperature in winter. Some mines in Liaoning stopped production during CNY and resumed production on February 18, while some mines remain closed due to mining license issues. Some small mines in Heilongjiang and Jilin will resume production in mid-to-late March. Mines in Xinjiang will resume production in April.
