According to the latest data from SMM, the capacity utilization rate of domestic mines reached 60.1% last week, up 0.1 percentage points MoM. The production of iron ore concentrates reached 802,000 mt, an increase of 1,000 mt from the previous week. Meanwhile, the inventory of iron ore concentrates at mines decreased by 5,000 mt, with the total inventory currently at 290,000 mt.
Last week, the domestic production of iron ore concentrates remained relatively stable, with most mines operating normally as planned. Production may decline slightly next week. There are two main reasons for this: First, a large mine in Anhui province will undergo annual maintenance, leading to a significant drop in production. Additionally, although mine production affected by safety inspections in Liaoning province has gradually resumed, recent rainfall has hindered underground mining, resulting in a less pronounced expected increase in iron ore concentrates. However, some mines in the Handan-Xingtai area of Hebei province are expected to officially resume production this week, which may bring a certain increase in local iron ore concentrate production. Despite this, overall, iron ore concentrate production may still decline slightly this week. Nevertheless, it is expected that overall iron ore concentrate production will gradually rebound after the mid-to-late month.
