China increased iron ore production by 13.2% y/y in January-June

Chinese mining companies increased iron ore production by 13.2% in January-June 2024 compared to the same period in 2023, to 554.1 million tons. This is evidenced by data from the National Bureau of Statistics (NBS), SteelOrbis reports.

In June of this year, Chinese mining companies increased ore production by 9.9% compared to June 2023, and by 9.2% compared to the previous month to 96.62 million tons.

Iron ore prices were on a downward trend for most of June, with a sharp rise from June 24 to July 4. The highest level of $115/t was observed on June 1-2, while the lowest was $102/t on June 24. The negative dynamics of steel prices due to heat and heavy rains in June had a negative impact on iron ore prices during the month.

China’s imports of iron ore reached 97.61 million tons last month, down 4.3% from May. The average import price amounted to $107.3/t (-1.5% m/m). In January-June, this figure increased by 6.2% y/y – to 611.18 million tons.

At the same time, in January-June, Chinese steelmakers produced 530.57 million tons of steel, down 1.1% year-on-year. In June, steel production in the country fell by 1.3% compared to May, to 91.61 million tons, which was caused by lower demand and a reduction in steelmakers’ margins.

According to experts, demand for steel fell in June as heat and heavy rains in the southern regions limited construction activity. In addition, exports of steel products showed a decline last month.