China: Crude Iron Ore Production Plunge 38% in H1 CY18

On Yearly basis, China has produced 65.5MnT in Jun’18 down sharply by 47%  against 124.69MnT in Jun’17.

China crude iron ore production has also down by 3% M-o-M in Jun`18 compared to 67.25MnT in May`18.

Monthly average spot iron ore prices stable in Jun`18 -:

Average global iron ore fines (Fe 62%) prices are stable to USD66/MT in Jun`18 in line with the last month average prices.

Reason for Significant decline in Iron ore production-:

1. Revoking iron ore licenses-: Due to imposed strict govt. regulation to control smog related problems. China has started revoking a decent number of iron ore mines licenses in Oct`17. Miners are forced to upgrade the mining process to match the guidelines given by the China govt.

2. Unveiled further Production cuts-: In that process, they have further imposed production cuts in Tangshan (Northern China), resulted Steel mills owner prefers low alumina high-grade raw material.

As per figures released by National Bureau of Statistics (NBS), China has produced 1.23BnT of crude iron ore (Run-of-Mine) in CY`17, up 7.1 % as against CY`16.