China's May ROM iron ore output rises 1% m-o-m
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China produced 88.48 million tonnes (mnt) of run-of-mine (ROM) iron ore in May, growing by a small 0.7% on month after the on-month drop of 10.4% recorded in April, Mysteel Global learned from new data released by the country's National Bureau of Statistics (NBS). Meanwhile, the volume also logged a 14% rise from May 2023.
During January-May, China's ROM iron ore output totaled 457.35 mnt, up by 13.4% from the same period last year, the NBS data showed.
Last month, three out of the country's top four iron-ore producing provinces and regions posted on-month gains in their ROM iron ore output, with North China's Hebei province being the only exception. In May, iron ore production in Hebei fell for the second straight month by another 2% on month to reach 44.36 mnt, according to the NBS data.
One of the possible reasons for the decline could be the slow recovery of production at some mining companies in Tangshan, Hebei province, after they had suspended operations during China's Labour Day holiday over 1-5 May, as reported
The increase in domestic iron ore output overall last month was in line with Mysteel's monthly survey results among 433 Chinese mining companies, which showed that their output of iron ore concentrates in May had also risen by 1.2% on month to reach 26.67 mnt.
The strengthened concentrates production at domestic miners was to meet firm demand for the feed material from steelmakers, as the mills ramped up their hot metal production in response to improved profit margins, Mysteel Global noted.
Consequently, the miners also enjoyed better margins when selling their iron ore concentrates last month. In May, the offering price of 66% Fe grade iron ore concentrates in Hebei's Tangshan averaged yuan 1,058/dmt ($145.8/dmt) EXW and including the 13% VAT, higher by yuan 42/dmt as compared to the yuan 1,016/dmt average in April, Mysteel's assessment showed.
Note: This article has been written in accordance with an article exchange agreement between MySteel Global and BigMint.
