NBS: China's ROM iron ore output falls 6% m-o-m in Nov'24

• Hebei, Yunnan's outputs drop on maintenance shutdowns
  
  
• Domestic concentrates production falls 1.9% m-o-m in Nov
  
  

Mysteel Global: China's production of run-of-mine (ROM) iron ore totalled 81.2 million tonnes (mnt) in November 2024, a drop of 6.1% m-o-m or 5.2% y-o-y, according to the latest data from the country's National Bureau of Statistics (NBS). Over January-November, the country's ROM ore production rose 1.9% from the same period last year to 952.3 mnt, the NBS data show.

Specifically, two out of the country's top four iron ore-producing bases posted m-o-m drops in their ROM ore output last month. Miners in North China's Hebei province produced 36.3 mnt in November, 9% lower m-o-m, while output among those in Southwest China's Yunnan decreased by 10% m-o-m to 7.6 mnt.

Explaining the declines, market sources said that many miners in these two provinces halted their production for maintenance last month but for different reasons. For those in Hebei, their production suspension was in response to a local government mandate aimed at easing air pollution, while some in Yunnan stopped operations due to mine safety inspections being conducted by local authorities.

Chinese miners' lower production of ROM iron ore in November also resulted in falling production of domestically mined concentrates. The daily output of iron ore concs produced by the 186 miners under Mysteel's regular tracking dropped steadily throughout November to an average of 480,200 tonnes (t) over 21-27 November, down by 1.9% m-o-m.

The tight availability of domestic concs led miners to hike their quotations during the past month. For example, offers for 66% Fe iron ore concentrates in North China's Tangshan were assessed by Mysteel at RMB 977/dmt ($133.9/dmt) exw, including 13% VAT, on 29 November, higher by RMB 20/t from the beginning of the month.

However, some domestic steelmakers refused to accept higher prices for domestic concs, given that the winter fall-off in steel demand was still causing their margins to shrink, market sources said.

Consequently, tepid purchases of iron ore concs among mills meant that the in-plant stocks held by domestic miners actually accumulated last month, despite the reduced production. As of 28 November, total inventories of iron ore concs among the 186 surveyed miners rose to 720,100 t, mounting by 0.9% from the level on 31 October.

Note: This article has been written in accordance with a content exchange agreement between Mysteel Global and BigMint.