Capacity Utilisation Rates Of Chinese Iron Ore Mines To Climb Further In June As Production Resumptions Will Counteract Impact From Safety Checks

SHANGHAI, Jun 14 (SMM) – The average capacity utilisation rate of domestic iron ore mines stood at 55.8% in May, up 1.1 percentage points MoM. The output of iron ore concentrates rose 1.09 million mt MoM to 21.28 million mt in May.

Higher capacity utilisation rates were mainly driven by four factors: 1. Mining activities in some regions, such as Inner Mongolia, Liaoning, and Hebei, picked up after explosives supply was restored. 2. Some mines resumed or ramped up production after being disturbed by environmental protection rectifications or safety checks. 3. Steel mills were more willing to purchase after iron ore prices fell in May, driving mines to increase production. 4. The production efficiency of some dressing plants increased after technological transformation.

The capacity utilisation rates still have upside potential in June. First of all, mines will be more motivated to produce this month, betting on iron ore price rally after sharp drop in May. Secondly, some mines will resume production after being affected by accident earlier and mines who resumed last month will ramp up production this month. However, the capacity utilisation rates of some mines may drop due to regular safety checks.

More popular news

Daily Updates on SHFE Base Metals and Stainless Steel Warrants

Manufacturing PMI In Euro Zone And Germany Both Pick Up, But Still In Contraction Territory

Goldman Sachs and Citibank Cuts Iron Ore Price Forecast, with the Former Citing Surplus Steel in China and Slower Recovery of Property Sales

ANZ Bank Is Bearish Towards Iron Ore Prices, Citing Four Big Headwinds In China, Including Real Estate Downturn

Commerzbank Sees Higher Oil Prices, Citing Significantly Tightening Market  

Goldman Sachs Sees OPEC+ Meeting As "Moderately Bullish" As Saudi Move Could Offset Some Downside Risks

Steel Scrap Prices Bottomed Out In Late May After Headwinds In Ferrous Metals Market Were Priced In, Wild Price Movement Will Be Monitored In June

Vale Is Advancing Huge Investment, Betting On Strong Demand For High-Grade Iron Ore

South China Battles Power Crisis, The Worst This Year

Aluminium Ingot Inventories In China Fall To Alarmingly Low Level

China’s Steel Exports Jumped, In Contrast To Falling Exports Of Unwrought Aluminium &Aluminium Semis And Rare Earth

Tragedy of Electric Car Catching Fire Immediately After Collision In China’s Hangzhou City Renews Concerns Over Safety Of Nickel-Manganese-Cobalt (NMC 811) Battery

Fitch: Global Trade Is Slowing Sharply And May Grow Only 1.9% This Year

RMB Assets Are More Competitive In The Medium And Long Run Amid Cyclical Global Financial Downturn, Director Of China’s State Administration Of Foreign Exchange Says

China Is Confident, Capable and Qualified to Achieve GDP and Other Goals Set at the "Two Sessions" and YoY Growth Rate of CPI Will Recover to Above 1% by December, Governor of China’s Central Bank Says

Oil Price Downturn To Reverse? Saudi Arabia "Declares War" On Bears, Bulls Betting On $100/barrel