China: Crude Iron Ore ROM Production Stable in Aug'19

According to National Bureau of Statistics, China - world's largest consumer and importer of iron ore has witnessed stability in monthly crude iron ore production for Aug'19. The production recorded rise marginally to 74.30 MnT, as against 74 MnT in July'19. On yearly basis, output increased 15% as compared to 64.65 MnT in Aug'18. Chinese steel mills preferred domestic iron ore concentrate and pellet amid high global prices and falling steel margins.

For CY19 (Jan-Aug), crude iron ore production recorded at 549.02 MnT, up 6% as against 519.98 MnT in CY18 (Jan-Aug).

China iron ore & pellet imports hit 19 months high in Aug'19

China iron ore imports recorded 4% rise to 94.85 MnT in Aug'19 against July'19 imports at 91.02 MnT. The imports have hit 19- months high as the level was last witnessed in Jan'18 at 100.32 MnT. The imports for the month picked up amid easing supplies from largest iron ore miners. Vale- announced resumption at its Brucutu mines and also resumed partial operation at its Vargem Grande Complex in July'19. Besides, the increased infrastructure projects China favored imports.

Average global iron ore fines prices fell on monthly basis

Monthly average iron ore prices fines (Fe 62%) stood at USD 92/MT, CFR China in Aug against previous month at USD 120/MT, CFR China. Though the spot iron ore fines (Fe 62%) decreased sharply by 23% in Aug'19.

However, amid approaching week-long National holiday in China from 1st to 6th Oct the mills are moving ahead to restock the material, which led the prices to rise this week.