China increased iron ore production by 7% y/y in January-August

In January-August 2023, China increased iron ore production by 7% compared to the same period in 2022 – up to 659.2 million tons. SteelOrbis informs about it citing data from the National Bureau of Statistics of China (NBSC).

In August 2023, iron ore production increased by 1.3% compared to August 2022, and by 0.7% compared to the previous month – up to 86.33 million tons.

In August, iron ore spot prices rose sharply amid higher futures and the introduction of stimulus measures by the authorities, which boosted market sentiment.

As GMK Center reported earlier, Chinese steel companies in August 2023 increased iron ore imports by 10.6% compared to the same month of 2022 – up to 106.41 million tons. In January-August, the country’s steelmakers increased iron ore imports by 7.4% compared to the same period last year – up to 775.7 million tons. The average import price during the period was 785.6 yuan per ton ($112.7), down 9.9% year-on-year.

Also, analysts predict price reduction for iron ore to $90-100/t in 2023. This is due to weak demand from Chinese steelmakers due to the situation in the construction sector. Goldman Sachs has revised down its forecast for iron ore prices for the second half of 2023 by 12% – to $90/t. ING analysts expect the price of this raw material to be at $105/t in the third quarter, and $100/t – in the fourth.