Steel production in China has in the year to date increased by 3%, driven by a strong increase in exports, with lower domestic iron-ore production, less steel scrap usage and low iron-ore inventories at Chinese ports providing further price support.
Government stimulus and signs of the Chinese economy stabilising also helped support the iron-ore market.
On average in the year to date, Anglo American company Kumba Iron Ore achieved a consistent 66:34 lump:fine ratio and an iron content of 63.5%, which improved in quarter three to 64.1%. This translated into an average year-to-date realised free-on-board export iron-ore price of $110/ wet metric tonne (wmt), 10% above the average benchmark price of $100/wmt.
