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

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.