China: Crude Iron Ore Output Falls 9% M-o-M in Apr'17

Despite being world's largest importer of iron ore, China is also largest producer of iron ore. Its quench for steel making raw materials seems to be unending.

According to latest data released by National Bureau of Statistics of China, the country produced around 103.4 MnT ROM (Run-of-mine) in Apr'17. Crude iron ore production has come down by 9% M-o-M. In Mar'17, China's crude iron ore output stood at 113.6 MnT.

However, there was a marginal increase of 1% Y-o-Y as well compared with month of Apr'16 where the production was 102.6 MnT then.

The total volume of crude iron ore production in Jan-Apr of 2017 was registered at 401.2 MnT, significantly up by 11% Y-o-Y as it was 361.8 MnT in the same period last year. Thus country's crude iron ore production is on upside this year.

Supply glut continues to pull down iron ore prices

The supply glut is still a matter of concerns in respect to falling prices. In Apr'17, the monthly average iron ore prices for Fe 62% Australian fines moved down sharply by USD 17/MT and was registered at USD 70/MT CFR China against USD 87/MT, CFR China in Mar'17.

On the other hand, domestic iron ore concentrate in Hebei fell from RMB 820/MT (including 17% VAT) in beginning of Apr'17 to RMB 650/MT (including 17% VAT) by the end of Apr'17.