[SMM survey] Mine selection is producing as planned, with iron ore concentrates production slightly increasing

According to the latest data from SMM, the capacity utilization rate of domestic mines reached 61.9% last week, up 2.2 percentage points MoM. The production of iron ore concentrates reached 826,000 mt, an increase of 29,000 mt from the previous week. Meanwhile, the inventory of iron ore concentrates at mines decreased by 50,000 mt, with the total inventory currently at 315,000 mt.
Last week, domestic iron ore concentrate production increased, with the growth mainly concentrated in east China. Recently, local mines have implemented sales promotions, leading to an improvement in overall sales and an increase in production enthusiasm. Production in other regions remained relatively stable. Market rumors suggest that a new mine resources bill will be implemented on July 1, which will have a positive impact on mine expansion. Some large open-pit mines in north China are expected to see new opportunities, potentially alleviating the current tight supply of raw ore in the future, and there may be further room for growth in domestic iron ore concentrate production.