Capacity Utilisation Rate Of Domestic Iron Ore Mines Rose In August And Expected To Climb Further In September

Published: Sep 13, 2024 10:33

Source: SMM

Save

According to SMM calculations, the capacity utilisation rate of domestic mines in August 2024 was 55.3%, up 1.1% MoM; the total production of concentrates in August was 20.624 million mt, an increase of 416,000 mt MoM, with a daily average output of 665,000 mt, up approximately 13,000 mt MoM. This slight increase in capacity utilisation rate was mainly concentrated in the North China region.
Reasons for the increase:
1) The impact of environmental protection and safety inspections in Hebei weakened during the month. Mines that had previously ceased production gradually resumed operations, especially some large open-pit mines, leading to a significant increase in local iron ore concentrates output.
2) Increased production from the subsidiaries of large steel mills in Shanxi. After resuming production at the end of June, output has been gradually increasing. Due to the recent resumption, frequent safety inspections and cautious production following leadership changes have resulted in a slow increase in output.
3) Some state-owned mines saw a slight increase in capacity utilisation rate, leading to a slight rise in concentrate production.
There are still some regions where the production of concentrates is declining, mainly due to heavy rainfall and various inspections. With the rainy season gradually coming to an end and the reduction of safety and environmental inspections entering September, previously halted mines are expected to resume operations gradually. It is anticipated that the overall capacity utilisation rate will see a slight increase in September.

Output

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

1 hour ago

MMi Daily Iron Ore Report (September 14)

Iron ore futures were weak today. The DCE most-traded I2701 contract settled at 708.5 yuan/mt, down 1.60% from the previous session. Qingdao port spot prices fell 0-5 yuan/mt on average. Traders were moderately active and mills bought to cover immediate needs, with many staying on the sidelines. Spot trading was thin.

1 hour ago

2 hours ago

[SMM Coking Coal and Coke Daily Brief] 20260914

2 hours ago

[SMM Sheets & Plates Daily Review] Futures weak with support at lows, coil prices move sideways

The most-traded HRC contract closed at 3,310 yuan/mt today, with futures in the doldrums and a full-day decline of 0.81%. In the spot market, HRC prices fell 10-20 yuan/mt MoM, CRC prices were in the doldrums, and intraday trading was on the soft side. Looking at HRC fundamentals, the impact from maintenance on HRC rolling lines decreased WoW this week, with rolling lines that had undergone concentrated maintenance resuming production one after another, leading to a rebound in overall HRC production. However, steel mills' willingness to conduct voluntary maintenance persisted, and with current profit losses constraining output, the pace of production recovery remained relatively moderate. Downstream end-users showed growing wait-and-see sentiment, as demand in the September peak season has yet to be fully verified, limiting transaction volumes. But manufacturing recovery expectations continued to build—the manufacturing PMI rebounded to 49.8% in August, with the new orders index back above the 50 mark. On the cost side, the fifth round of coke price increases has been implemented, and negotiations for the sixth round have begun. Coking coal supply still faces tightening expectations due to safety inspections, providing some cost support, but coking coal and coke futures led declines today, marginally weakening that support. Notably, Baosteel, Ansteel, and Bensteel Group all raised their October HRC base prices by 200 yuan/mt, signaling a clear stance from leading mills to hold prices firm. In summary, the HRC market is expected to adjust steadily this week, with the most-traded contract seen in the 3,280-3,390 yuan/mt range. Key factors to watch include the pace of peak-season demand verification, the implementation of the sixth round of coke price increases, and the sustainability of inventory destocking.

2 hours ago