China's ROM iron ore output rises 6% y-o-y in 9M CY'23

China's run-of-mine (ROM) iron ore output totalled 742.8 million tonnes during January-September, higher by 6.1% from the corresponding period last year, according to the latest statistics compiled by the country's National Bureau of Statistics (NBS). The on-year increase narrowed from the 7% recorded for January-August, due to last month's lower output.

During September alone, China produced 84.4 million tonnes of ROM iron ore, falling 2.3% from August and ending four successive months of gains, Mysteel Global calculated based on historical data. Last month's output also saw a slight on-year dip of 0.9%.

Most domestic iron ore mining companies remained active in producing during most of September until some suspended operations a few days ahead of China's Mid-Autumn Festival and National Day holiday that started on September 29, Mysteel Global noted.

At that time, most steelmakers had stopped iron ore buying, having procured sufficient quantities to maintain normal production during the eight-day holiday when most ore traders would have closed their businesses, making further replenishment difficult for the mills, as reported.

Previously, steel firms across the country had increased their buying of domestic iron ore to build up internal stocks to tide them through the long break, Mysteel Global noted. The mills needed certain quantities to keep their furnaces running at the high rates many are currently observing.

Consequently, iron ore stocked by domestic miners kept shrinking, due to the miners' lower production and the firm demand of steel mills. As of October 5, inventories of domestic iron ore concentrates held the 186 Chinese mining enterprises under Mysteel's regular survey had fallen to 921,500 tonnes, down by nearly 37% on month.

The healthy market fundamentals helped lever iron ore prices up last month, with the offering price of 66% Fe grade concs in Tangshan in North China's Hebei province under Mysteel's assessment rising to Yuan 1,101/dmt ($150.4/dmt) including the 13% VAT on September 28, Yuan 25/dmt higher than a month earlier.