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The daily iron ore output in June has become the highest production so far this year, and it also represents an increase of 1.4% on an annual basis, according to the country’s National Bureau of Statistics (NBS).
Spot prices of 66% Fe concentrate in Hebei increased by 30-50 yuan ($5-8) per tonne over June to 1,090-1,100 yuan per tonne with tax on June 30.
“As the steel market is downbeat, steel mills are turning to domestic iron ore, which is relatively cheaper,” a steel mill source in Shanghai said.
“Traditionally, output in June is high due to seasonal reasons,” an iron ore trader in Shanghai said.
“Domestic iron ore production may soon tumble, following the drop in steel product prices,” another trader in Shanghai said.
However, crude steel output in June remained high.
The country’s crude steel output hit 2 million tpd, up 1.2% from May, according to NBS data.