[SMM survey] Safety inspections and procedures affect a slight decline in iron ore concentrates production

According to the latest data from SMM, the capacity utilization rate of domestic mines reached 60.0% last week, down 1.9 percentage points MoM. The production of iron ore concentrates reached 801,000 mt, a decrease of 25,000 mt from the previous week. Meanwhile, the inventory of iron ore concentrates at mines decreased by 20,000 mt, with the total inventory currently at 295,000 mt.
Last week, domestic iron ore concentrate production slightly declined, primarily due to the northeastern Liaoning region. Firstly, recent illegal mining incidents in the area have led to increased safety inspections, affecting the production of some mines. Secondly, a large private mine in the region is currently processing the relevant procedures for its tailings pond, resulting in a temporary shutdown of the mine. The resumption of production time remains uncertain. The production of iron ore concentrates in other regions remained relatively stable.
Looking ahead to next week, it is expected that mine production will remain relatively stable. In the mid-to-late July, some previously shuttered private mines in the Handan and Xingtai regions of Hebei Province are expected to resume production, potentially bringing about a certain increase. Additionally, mines that have suspended production due to safety and environmental protection inspections may gradually resume production. Overall, domestic iron ore concentrate production is expected to rebound slightly in the later period.