[SMM survey] Normal production at mine sites, relatively stable production of iron ore powder

According to the latest data from SMM, the capacity utilisation rate of domestic mines reached 59.2% last week, a slight decrease of 0.1 percentage points from the previous week. The production of iron ore concentrates was 790,000 mt, basically flat WoW. Sales volume was 770,000 mt, a decrease of 7,000 mt WoW. The inventory of iron ore concentrates at mines increased by 20,000 mt, with the total inventory now at 280,000 mt.

Currently, mines and beneficiation plants are operating normally as planned, with the production of iron ore concentrates remaining relatively stable. Mines in Liaoning are once again facing safety inspections, mainly targeting the discharge issues of tailings ponds. In the short term, the impact on local production is limited, but some small and medium-sized mines and beneficiation plants may face the risk of halting production for rectification. In Inner Mongolia, due to the blast furnace maintenance at a large steel mill, the shipment of ore has slowed down, leading to an accumulation of inventory. It is expected that the production of iron ore concentrates will remain stable this week. Attention should be paid to the progress of production resumptions at some large mines in Hebei and Shandong, which may bring a certain increase in local iron ore concentrate supply.