China increased iron ore production by 8% y/y in July

In July 2023, China increased iron ore production by 8% compared to July 2022 – up to 85.7 million tons. SteelOrbis informs about it citing data from the National Bureau of Statistics of China (NBSC).

Compared to June 2023, production increased by 0.6%.

In January-July 2023, iron ore production in China amounted to 566.8 million tons, which is 6.5% more than in the same period of 2022.

In July, prices for these raw materials in the country increased, and subsequently fluctuated at fairly high levels. At the end of the month, iron ore quotations fell due to the impact of typhoons Doksuri and Hanun.

As GMK Center reported earlier, Chinese steel companies cut down in July 2023 import of iron ore by 2.1% compared to the previous month – to 93.4 million tons. Compared to July 2022, the volume of iron ore imports increased by 2.5%. The average cost of imports in July was $104.9/t, which is 1.7% less compared to June. In January-July, the country increased its iron ore import by 6.9% compared to the same period last year – up to 669.4 million tons.

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. Analysts of the ING company expect the price of this raw material to be at the level of $105/t in the third quarter, and $100/t – in the fourth.