China intends to reduce its dependence on imported iron ore by increasing domestic production of iron ore concentrate. The China Iron and Steel Association (CISA) stated that domestic mining companies plan to increase production of iron ore concentrate by 5-10 million tons in 2024 compared to 2023 levels.
CISA notes that progress in China's new iron ore projects will contribute to the production of 370 million tons of iron ore concentrate per year by 2025, decreasing the reliance of local steel companies on imports. In 2023, China imported 1.179 billion tons of iron ore, an increase of 6.6% year-on-year.
In the first quarter of 2024, China produced 72.07 million tons of iron ore concentrate (+4% year-on-year) and 284.09 million tons of iron ore (+15.3% year-on-year). Meanwhile, imports of iron ore in January-April 2024 reached 411.82 million tons (+7.2% year-on-year).
CISA expects iron ore prices to remain low in the long term, as the global supply of raw materials will be sufficient due to new projects on the global market, including Rio Tinto's Simandou project in Guinea.
In 2023, China produced 1.019 billion tons of steel, up 0.6% compared to 2022, halting the downward trend in the country's steel industry after two consecutive years of declining production. The Chinese authorities did not impose restrictions on steel production last year, contributing to increased production and revenue for local steelmakers.
China's steel exports in 2023 increased by 36.2% year-on-year to 90.3 million tons, while steel imports amounted to 7.64 million tons, down 27.6% year-on-year. Ore imports increased by 6.6% year-on-year to 1.179 billion tons for the year.
