According to the China Iron and Steel Association (CISA) figures, in July this year China’s iron ore production amounted to 73.996 million mt, up 9.9 percent year on year. Although the figure was only 1.2 percent higher than in June, it remained on an upward trend, reflecting the higher needs of steelmakers.
In the January-July period of the current year, China produced 483.876 million mt of iron ore, rising by 6.4 percent year on year.
However, international ratings agency Fitch has forecast in a recent report that Chinese domestic iron ore production will go down over the next nine years. “We forecast the country's output will decline slightly, from 802 million mt in 2019 to 785 million mt by 2028,” Fitch stated. The negative dynamics will appear due to lower import prices after the peak seen this year and stricter environmental regulations, which will lead to closures of higher-cost mines, Fitch indicated.
At the same time, production in the main exporting countries - Australia and Brazil - will continue to rise gradually. Australia is expected to post a 0.6 percent growth rate annually, while Brazil will increase iron ore output by 1.5 percent annually in the period up to 2028.