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

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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

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