Insight
Shanxi iron ore production resilient despite increasing seaborne supply
*Please note that this report only includes an Excel data file if this is indicated in "What's included" below
Report summary
Following a recent visit to mines and steel mills in Shanxi in June 2018, we identified that the price recovery since 2016 has changed the competitive landscape of the domestic iron ore market in China. Higher prices have incentivised iron ore producers in Shanxi to increase production as they are now generating profits. Major iron producing regions like Hebei are seeing a decline in iron ore concentrate production because of production restrictions and environmental policies. Shanxi has taken advantage of the situation and is filling the supply gap. Rising land transport costs and a preference for high quality iron ore is protecting Shanxi mines from being displaced by seaborne iron ore.
Table of contents
- Executive summary
- Falling hot metal production in Hebei boosts Shanxi iron output
- Freight charges to Shanxi make domestic iron ore competitive
- Low production cost will keep Shanxi iron ore output steady
- Increasing demand for high-grade ore has revived Shanxi mines
Tables and charts
This report includes the following images and tables:
- Contestable markets in China
- Shanxi and Shandong increase hot metal production to compensate for Hebei losses
- Hot metal production and iron ore production in Shanxi
- Seaborne vs domestic concentrate prices in Shanxi
- Rail and truck routes from ports to Shanxi
- Cash cost curve of Chinese iron ore mines
- Common Iron Ore Specification
What's included
This report contains:
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