China increased iron ore production by 4.1% y/y in January-August

Chinese mining companies increased iron ore production by 4.1% in January-August 2024 compared to the same period in 2023, to 696.49 million tons. This is evidenced by data from the National Bureau of Statistics (NBS), SteelOrbis reports.

In August of this year, Chinese mining companies reduced iron ore production by 16% compared to August 2023, and by 4.9% compared to the previous month – to 73.64 million tons.

Iron ore prices tended to decline for most of August, but recovered on August 18. The highest level of $103 per tonne was observed on August 2-5, while the lowest level was observed on August 16-18, at $91 per tonne. The negative dynamics of steel prices had a negative impact on iron ore prices during the month.

As GMK Center reported earlier, China’s imports of iron ore last month amounted to 101.4 million tons, down 1.4% compared to July and 4.7% y/y. In the first 8 months of 2024, China’s iron ore imports totaled 814.95 million tons, up 5.2% y/y.

At the same time, in January-August, Chinese steelmakers produced 691 million tons of steel, down 3.3% from the same period last year. In August, steel production in the country fell by 6.1% compared to July – to 77.92 million tons.

The average daily steel production by Chinese steelmakers in August amounted to 2.51 million tons, down 6.1% compared to July and the lowest since the beginning of the year. This is due to the fact that a number of local steel mills were shut down for maintenance or reduced production amid declining demand and steel prices.