China steel and iron ore: Liaoning research trip takeaways

Wood Mackenzie participated in a week-long research activity from 7 to 11 April 2025. We visited three domestic iron ore mines and three large steel mills in Liaoning Province to understand their recent production situation, profitability, and domestic iron ore supply and demand. Liaoning dominates domestic iron ore production in Northeast China, accounting for over 95% of the region's output. The Northeast, comprising Liaoning, Jilin and Heilongjiang provinces, produces 20% of China's domestic iron ore but only 10% of its hot metal. This high self-sufficiency rate for domestic ore underscores Liaoning's importance as the country's primary mining region. Iron ore prices falling to US$90-100/t do not significantly impact Liaoning's ore production. However, three main factors limit future growth: • Resource depletion forces a shift from open-pit to underground mining • Stricter government regulations • Environmental regulations