Chinese mining companies have significantly boosted iron ore production, achieving a 13.4% increase in the first five months of 2024 compared to the same period in 2023, reaching a total of 457.35 million tons. This data, reported by the National Bureau of Statistics (NBS) indicates a robust growth in the sector.
In May alone, iron ore production rose by 9% year-on-year and by 0.6% from the previous month, totaling 88.48 million tons. Despite this increase in production, iron ore prices experienced fluctuations throughout May, with the highest price recorded at $122 per ton on May 22 and the lowest at $114 per ton on May 15. The traditional seasonal downturn in the steel industry has negatively impacted prices, with weak demand expected to continue in the short term.
Additionally, China's iron ore imports also saw a rise, increasing by 7% year-on-year to 513.75 million tons in the January-May period. In May, imports grew by 6.1% year-on-year and 0.2% month-on-month, reaching 102 million tons.
This increase in imports contrasts with the decline in steel production, which fell by 1.4% to 438.61 million tons during the same period. The large volumes of iron ore imports have primarily been used for restocking rather than immediate steel production, with port inventories averaging 6.06 million tons over the past seven months.
