Iron ore production in China is likely to contract in the coming months after the price of 62% of iron ore fell to $ 83 /t CFR on Wednesday from a peak of $ 126.35 /t CFR on July 3, prompting domestic miners to boost production to a 19-month high.
The country's rough iron ore production rose 10% year-on-year to 74 million tonnes in July, according to the National Bureau of Statistics. Production in China's largest steel province, Hebei, was 25.76 million tonnes, or 35% of the total.
The mining cost of most Chinese companies for 62% Fe iron ore was around US $ 90 /t. The most efficient miners can mine at $ 60 per tonne, so many usually only raise rates when prices rise above $ 100 per tonne CFR.
Iron ore production in China peaks in July
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