China reduced iron ore production by 9.1% y/y in 1H2025

According to data from the National Bureau of Statistics of China (NBS), Chinese mining companies reduced iron ore production by 9.1% year-on-year to 508.59 million tons in January-June 2025 compared to the same period in 2024, SteelOrbis reports.

In June, ore production in the country amounted to 88.97 million tons, which is 8.4% less on an annualized basis, but 3.7% more than in the previous month.

At the same time, prices for imported raw materials fluctuated in June, initially falling but then recovering. The lowest level ($92/t) last month was observed on June 18, and the highest ($96/t) on June 1-2.

As a reminder, sea deliveries of iron ore to China in January-June amounted to 592.2 million tons, which is 3% less than last year. In June, imports of iron ore increased by 8% month-on-month to 105.95 million tons, while the average price fell by $3.3/t to $92.9/t. Monthly shipments reached their highest level this year. This reflects stable production levels in the country despite weak domestic demand, particularly due to the crisis in the real estate sector.

As reported by GMK Center, Chinese steelmakers reduced steel production by 9.2% in June 2025 compared to June 2024, to 83.2 million tons. Compared to the previous month, the figure fell by 3.9%. This is the third consecutive decline in monthly smelting volume, as a result of which steel production in the first half of this year fell to its lowest level since 2020 – 514.8 million tons (-3% y/y).

According to the forecast of the China Iron and Steel Association, steel production in China will decline by 4% y/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.