Multiple Favorable Factors Drove Capacity Utilisation Rate Of Domestic Mines To Grow September

SHANGHAI, Oct 12(SMM) – According to SMM calculations, the capacity utilization rate of domestic iron ore mines in September 2023 was 57.4%, an increase of 0.7% from August. However, due to a shorter month, the output of iron ore concentrate in September fell 435,000 mt MoM to 21.154 million mt. The month-on-month increase in production capacity utilization of domestic mines was mainly driven by the following factors: 1) Imported ore prices rose, with the index once again exceeding $120/mt, while domestic ore prices in most areas also increased significantly. Therefore, mines actively ramped up production; 2) Steel mills carried out pre-holiday replenishment, so mine sales were optimistic with basically no inventory; 3) Some mines carried out year-end production increases to reach annual targets. Some mines in some areas, such as Shanxi, Liaoning, and Inner Mongolia, started to raise production in September.