As a result, China’s iron ore output fell -27% MoM or -18% YoY to 70Mt, the lowest on record since Feb’22. Interestingly, the contraction was more brutal than the one for iron ore consumption as blast-furnace output declining by -4% MoM or -8% YoY. With poor iron ore quality and elevated operation costs, iron ore mines in China might be the next victims in the coming round of consolidation of the global steel industry.
If you would like to get more information on this topic and the impact on the freight market, please reach out to us on: [email protected].