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Chinese iron ore mines: will they restart?

1 minute read

How many closed iron ore mines will reopen with higher prices? Based on costs alone, a price of US$80/tonne is enough to incentivize almost 100 million tonnes of Chinese capacity to restart. But the reality of reopening mines is more complex than just considering costs.

What’s the future for Chinese iron ore mines? In the video below Rohan Kendall, Principal Analyst, Iron ore & Steel Costs, discusses the feasibility and complexity of Chinese mines restarting.


Will Chinese iron ore mines restart?

High iron ore prices have prompted speculation that previously closed Chinese mines will re-enter the market. But how feasible is it for Chinese mines to restart and how much production could be brought on?

Explore the China restart incentive curve

The main factors against restarts include expectations that prices will fall, lack of finance and environmental licencing. Most Chinese industry participants we have contacted expect Chinese domestic concentrate production to fall, not rise, this year. We hold the same view. We expect prices to fall towards US$50/tonne by the end of the year, leading to a further drop in Chinese production of around 20 million tonnes as lower-cost imports displace higher-cost domestic supply.

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