Insight
China’s tightening environmental policy weighs on Hebei iron ore supply
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
China's environmental policies have reduced iron ore production in Hebei province. Production costs are likely to increase due to the new regulations and we expect many small and medium size mines to close in the near future because they cannot afford to comply with the new policies. Mines that previously closed are unlikely to enter the market as the barrier for re-entry is too high. As a result of these regulations, it will be difficult for domestic concentrate to compete with seaborne ore. We expect that seaborne supply will continue to replace domestic sources in coastal regions in China. High grade fines, concentrates, and direct charge ores will benefit the most from this change.
Table of contents
- Executive summary
- New focus on environmental policies will harm domestic production
- Safety concerns will add more pressure to reduce production and eliminate iron ore capacity
- Steel mills will use more seaborne ore because of limited domestic production
Tables and charts
This report includes the following images and tables:
- Cash cost of Chinese iron ore mines
- Source of iron ore in Hebei steel mills
- Feedstock compostion in Tangshan steel mills visited
- Contestable market in China
What's included
This report contains:
Other reports you may be interested in
Insight
Tokyo Metals and Mining Briefing 2025
Ferrous market outlook, energy transition, and trade dynamics—key insights from Wood Mackenzie’s Metals and Mining Tokyo briefing.
$1,050
Insight
Wood Mackenzie 2025 Webinar - Bulks in Flux: from Coal to Green Steel
Navigating global bulk commodity market opportunities and challenges
$1,050
Insight
CMRG's role in the iron ore market
Examining the stabilisation efforts and market impact
$1,050
