Operating Rates of Domestic Iron Ore Mines Dropped in September, and What is its Outlook in October?

Published: Oct 14, 2022 11:55 (GMT+8)
Source: SMM
According to SMM estimates, the average capacity utilisation rate of domestic iron ore mines stood at 55.9% in September 2022, down 1.8 percentage points MoM.

SHANGHAI, Oct 14 (SMM) - The operation of domestic iron ore mines have been affected by the mine accidents in Qianxi County and Shanxi Province, and the use of explosives are increasingly restricted with the National Congress around the corner. According to SMM estimates, the average capacity utilisation rate of domestic iron ore mines stood at 55.9% in September 2022, down 1.8 percentage points MoM. During the same period, the iron ore concentrate output was 20.36 million mt, a decline of 1.37 million mt from a month ago. Specifically, the output of state-owned mines fell 3.1% to 10.93 million mt, and that of private mines dropped 9.7% to 9.43 million mt.

The capacity utilisation rates dropped of mines in Hebei, Shanxi, Jilin, Jiangsu, Xinjiang and other provinces in south-west China. The reasons are as follows. First, the mine accidents in Daixian County, Qianxi County and Tonghua City resulted in restriction on production for security concerns. The explosives supply was banned, and dressing plants with insufficient ROM inventory were closed. Second, the use of explosives in areas surrounding Beijing have long been restricted due to the upcoming National Congress. Third, mines in some areas were forced to halt the production due to snowfalls.

The capacity utilisation rates of mines increased of mines in Inner Mongolia, Liaoning, Shandong, Anhui, Jiangxi, Fujian, Guangdong and other provinces in central China. First, many mines in the above-mentioned places ramped up the production in late September, when the ore prices rose. Second, most mines resumed the operation as the maintenance and power rationing ended. 

SMM expects that the average capacity utilisation rate of domestic mines will continue to decline in October. It is mainly because explosives supply has been prohibited on the upcoming national major conferences. At the same time, many mines have to cut the output due to a lack of ROM inventory. Among them, mines in Hebei are affected most, where the explosives are completely banned in October. As a result, all dressing plants were shut down in Tangshan and Hanxing, except for affiliated dressing plants to open-pit mines. In addition, the weather is turning cold in north China, where it begins to snow. The adverse weather, coupled with poor profits, has caused some mines to suspend the production as well.

Data Source Statement: Except for publicly available information, all other data are processed by SMM based on publicly available information, market communication, and relying on SMM's internal database model. They are for reference only and do not constitute decision-making recommendations.

For any inquiries or for more information, please contact: lemonzhao@smm.cn
For more information on how to access our research reports, please contact:service.en@smm.cn
Related News
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
Sep 28, 2026 17:34 (GMT+8)
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
Read More
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
Heyuan Issues Strict Regulations and Fines for Unauthorized Waste Lead-Acid Battery Management
[Waste Lead-Acid Battery Market Update] Recently, the Heyuan Municipal Ecology and Environment Bureau issued the "Notice on Regulating the Management of Waste Lead-Acid Batteries." According to the Ecological Environment Code of the People's Republic of China, enterprises and public institutions that engage in the collection and storage of waste without a permit may be fined 200,000-1 million yuan; those that engage in utilization and disposal operations without a permit may be fined 1-5 million yuan and ordered to suspend operations or shut down, with responsible persons fined 100,000-1 million yuan; if the act constitutes a crime, criminal liability shall be pursued in accordance with the law.
Sep 28, 2026 17:34 (GMT+8)
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
Sep 28, 2026 17:33 (GMT+8)
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
Read More
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
"Guangzhou Tightens E-bike Waste Lead-Acid Battery Management, Clarifies Hazardous Waste Rules"
[Market Dynamics of Waste Lead-Acid Batteries from E-bikes] Recently, the Guangzhou Municipal Ecology and Environment Bureau issued a notice on the key points for environmental management of waste lead-acid batteries from e-bikes in Guangzhou. The document clarifies that waste lead-acid batteries are hazardous waste (HW31, 900-52), and scrap batteries generated from store recycling, trade-in, and repair must be transferred to licensed units. Units holding a hazardous waste collection permit (including 900-52) are exempt from electronic transfer manifests during the collection process under the centralized collection pilot program.
Sep 28, 2026 17:33 (GMT+8)
Peru sees 1 million t/y copper output boost within five to six years
Sep 26, 2026 01:38 (GMT+8)
Peru sees 1 million t/y copper output boost within five to six years
Read More
Peru sees 1 million t/y copper output boost within five to six years
Peru sees 1 million t/y copper output boost within five to six years
Peru's Energy and Mines Minister Guillermo Shinno said the country expects to add about 1 million tonnes of annual copper production within five to six years through new mining projects. The world's third-largest copper producer anticipates 2026 output of 2.5 to 2.7 million tonnes, roughly unchanged from 2023 as declining ore grades and recurring social conflicts weigh on supply. The newly elected government is seeking to reverse that stagnation by cutting red tape; in the two months since taking office, mining companies have stepped up engagement with the ministry. Shinno said officials have identified 27 permits that could be eliminated from roughly 100 mining-sector requirements, without lowering environmenta
Sep 26, 2026 01:38 (GMT+8)