Capacity utilisation rates at state-owned mines rose due to 1) technical transformation at some state-owned mines which grew output. A state-owned mine said that after the technical transformation, its daily output increased by about 500 mt.
2) It is understood that Ansteel’s concentrates output plan in 2023 slightly increased. In order to complete the planned amount, the state-owned mine remained in normal production during Labour Day holidays.
Capacity utilisation rates at private mines fell as 1) a large local private mine shifted to underground mining due to the exhaustion of resources at its open-pit mine. ROM resources were in severe shortages in May, and its concentrates output dropped sharply. The monthly concentrates production dropped from 300,000 mt with previous open-pit mining to 200,000 mt in recent months, and now it has further declined to 150,000 mt.
2) In Liaoning, there are some beneficiation plants whose resources have been exhausted, and they rely on buying ROM to maintain normal production. The mine said that the current purchase price of ROM is about 120 yuan/mt with an average Fe grade of about 20%. It produced Fe 66% iron ore concentrates and the concentrate ratio was 4. Plus processing fees and taxes, there was almost no profit margin. Therefore, concentrates output of these beneficiation plants declined.
The capacity utilisation rate in Liaoning is expected to remain stable in June.
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