Hopefully this bodes well for V and LGO. Need some good news don't we?
IRON ORE PRODUCTION OF CHINA REACHES MAXIMUM OF 11 MONTHS
Posted 23/10/2012
The production of iron ore in China reached a maximum of 11 months in September, according to official data released on Monday, with the recovery in prices of raw steel encouraging small private mining companies to resume production.
China's production of iron ore is being closely monitored, since a recovery in commodity prices since the beginning of September, after a minimum of about three years, is related to a decrease in the activities of mining companies with smaller and larger costs.
It is unlikely, however, that the increased production means a drop in dependence on imported ore, since the Chinese product has a lower iron content.
Production in China is about 15 percent iron content, on average, compared with 60 percent of the ore produced in Australia and Brazil, the main suppliers of Asians.
The production in September totaled 129.06 million tons, an increase of 11 percent from August and up 20 percent from the same period last year, according to data from the Office for National Statistics of China.
It was the most since October 2011, when production had reached 132.4 million tons.
"The only reason for the increase in production I can think is that smaller miners and steelmakers, which had suspended or cut production, producing again," said Qiy Yuecheng analyst Xiben New Line.
The production of rebar used in construction and produced mostly by smaller companies reached a record 15.82 million tonnes in September, up 17 percent from the same period last year.
A seasonal recovery in demand supported by increased construction activity has helped in the recovery of rebar prices by more than 10 percent since early September.
Prices of iron ore rose more than 30 percent after a minimum of about three years in early September.
The production of iron ore in China from January to September rose 17 percent from the same period last year, to 968 million tonnes, while the production of rebar increased 14 percent to 128.7 million tons.
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