From 2022, the volume of additional capacities amounted to 50 million tons
Since 2022, China has increased its iron ore concentrate production capacity by 50 million tons, according to the China Iron and Steel Industry Association (CISA). This is reported by Reuters.
Luo Tiejun, vice chairman of CISA, said that 50 million tons of additional capacity is part of a strategic plan (launched in March 2022) to increase production of a key ingredient for steelmaking. He did not specify what the total iron ore production capacity is now, but said that China will continue to accelerate the development of key iron ore projects to achieve security of supply.
«More than a dozen key iron ore projects have been launched since the implementation of the plan,» noted Luo Tiejun.
In January-September 2023, the country increased the production of iron ore concentrate by 1.3% year-on-year – up to 215.5 million tons. This is evidenced by the data of the state Metallurgical Mines Association of China (MMAC). It is expected that in 2023, the supply of these products will grow by 3% y/y and will amount to about 295 million tons.
According to the forecasts of China International Capital Corporation analysts, in 2024 China will produce about 300 million tons of iron ore.
China, the world’s leading steel producer, must import 80% of its iron ore. The country intends to increase domestic supplies in terms of concentrate with an iron content of 62% to 370 million tons by 2025 from about 270 million tons in 2022.
As GMK Center reported earlier, CISA actively looking for new opportunities to increase the use of internal resources of the iron ore in accordance with the plan developed by it. Demand for iron ore in China is expected to remain strong. In the short term, the country is unlikely to change the dominant model of the integrated process of steel production in blast furnaces and oxygen-converter furnaces. At the same time, new smelting technologies and the growing demand for direct reduction iron are increasing the requirements for iron ore quality.