BI-WEEKLY: China iron ore concs output at 9-month low
Daily output among the sampled miners declined for a third successive survey period, slipping by another 27,400 tonnes/day or 5.5% on fortnight, according to Mysteel’s latest survey on the market. The rate of the miners’ use of concentrating capacity decreased accordingly, slipping by another 3.51 percentage points over the two weeks to 60.6% as of October 10.
The production suspensions imposed on most miners in East China’s Shandong province and North China’s Hebei province (mainly Tangshan and Baoding cities) were lifted on October 2 and October 3 respectively, market sources confirmed.
The miners in these two regions were ordered to stop work from September 24 as a measure to reduce airborne pollution and so ensure clear skies for events commemorating the 70th National Day holiday over October 1-7, as reported.
Moreover, the ban on the distribution and use of explosives in mining – lifted after the holidays – had largely affected concentrate output among small- and medium-sized miners because they lacked run-of-mine iron ore, Mysteel was told.
However, the decline in production of concentrates had no impact on the stocks of concentrates the miners held, with the total reversing up by 45,000 tonnes or 1.2% on fortnight to 3.7 million tonnes as of October 10.
Those domestic mills subject to emergency production curbs during the survey period – also as a preventive measure against air pollution – had low demand for domestic concentrates procurement, as reported.
Elsewhere across the country, from October 2 authorities in Northeast China’s Liaoning province have been cracking down hard on overloaded trucks, with no end to the blitz in sight. With truck drivers now being extra careful about observing the tonnage limit, stocks of concentrates at local miners have increased a little, a market source in Shanghai disclosed.
Normally when truck overloading becomes an issue, steelmakers must arrange for additional trucks to collect their ore and must agree to pay higher freight costs to ensure smooth delivery. But some mills baulk at this and so the concentrates remain in the miners’ yards, Mysteel notes.
Over September 27-October 10, Mysteel’s bi-weekly survey among a smaller sample of 126 Chinese iron ore mining companies showed their concentrating capacity utilization rate continued to dip for a fourth survey period, shrinking by another 3.28 percentage points to 63.7%, also a nine-month low. Their concentrates stocks were down by another 30,000 tonnes on fortnight at 1.73 million tonnes.
Written by Zhiyao Li, lizy@mysteel.com
Edited by Russ McCulloch, russ.mcculloch@mysteel.com
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