China reduced iron ore production by 10.1% y/y in January-May

In May, raw material production amounted to 85.79 million tons

According to data from the National Bureau of Statistics of China (NBS), Chinese mining companies reduced iron ore production by 10.1% year-on-year to 414.32 million tons in January-May 2025 compared to the same period in 2024, SteelOrbis reports.

In May, ore production in the country amounted to 85.79 million tons, which is 3.6% less on an annualized basis, but 1.3% more than in the previous month.

At the same time, prices for imported raw materials fluctuated in May, initially rising but then falling. The lowest level ($96/t) last month was observed on May 27 and 31, and the highest ($102/t) on May 14.

It should be noted that sea deliveries of iron ore to China in May 2025 amounted to 98.13 million tons, which is 4.9% less than in the previous month and 3.8% less than in the previous year. Due to the decrease in imports, stocks in ports fell by 2.8% – to 133 million tons by May 30, the lowest level since February 2024.

In January-May, imports of raw materials decreased by 5.2% year-on-year – to 486.41 million tons.

As reported by GMK Center, Chinese steel companies reduced steel production by 6.9% in May 2025 compared to May 2024, to 86.55 million tons. In the first five months of the year, steel production in the country decreased by 1.7% year-on-year, to 431.63 million tons.

According to the forecast of the China Iron and Steel Association, steel production in China will decline by 4% y-o-y in 2025. This is in line with Beijing’s policy of trying to reduce the economy’s dependence on heavy industry and solve the problem of excess production capacity.