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China's Iron Ore Output to Rise in June

BI Steel Raw Material Suppliers, Global Dashboard
Yi Zhu
Team: Metals & Mining
BI Senior Industry Analyst

China's Iron Ore Output to Rise as Steelmakers Boost Production

(Bloomberg Intelligence) -- Chinese iron ore production is poised to rise in June and July on
increasing demand for their low-aluminum minerals by domestic steelmakers. Steel mills will likely
boost operating rates after completing maintenance checks and may shore up iron ore inventories on
tighter supply from Brazil. (06/11/20)

1. Chinese Iron Ore Mines to Lift Operating Rates

China's iron ore mines are poised to boost operating rates from June on robust demand for their low-
aluminum-content minerals. Domestic steelmakers typically mix high-aluminum ore from Australia with
low-aluminum Brazilian ore. They are now turning to Chinese miners on slowing shipments from the
South American country, where Vale was ordered to suspend operations that account for about 10% of
its output due to Covid-19.

China is the world's largest iron ore consumer, accounting for more than half of seaborne volume
demand. Vale, Rio Tinto, BHP and Fortescue are top suppliers to the country's steelmakers, particularly
coastal mills, due to their proximity to ports. (06/11/20)

Top Five Iron Ore Supplying Nations to China

Source: China Customs, Bloomberg Intelligence

2. China Miners to Maintain Low Inventory Levels

China's iron ore miners will likely sustain low inventory levels in June and July on rising orders by
domestic steel mills. Steelmakers are poised to increase operating rates after completing maintenance
checks. Some are restocking domestic iron ore amid declining shipments from Brazil, according to our
channel checks. The mineral is in tight supply after some Chinese mines halted production due to
Covid-19. (06/11/20)

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Bloomberg® 06/25/2020 23:02:35

 This document is being provided for the exclusive use of PHANTICH BVSC at BAOVIET SECURITIES JOINT STOCK CO. Not for redistribution.

China Steel, Iron Ore Prices (Yuan/Metric Ton)

Source: Antaike, MySteel, Bloomberg Intelligence

To contact the analyst for this research:

Yi Zhu at yzhu158@bloomberg.net

This report may not be modified or altered in any way. The BLOOMBERG PROFESSIONAL service and BLOOMBERG Data are owned and
distributed locally by Bloomberg Finance LP ("BFLP") and its subsidiaries in all jurisdictions other than Argentina, Bermuda, China, India,
Japan and Korea (the ("BFLP Countries"). BFLP is a wholly-owned subsidiary of Bloomberg LP ("BLP"). BLP provides BFLP with all the global
marketing and operational support and service for the Services and distributes the Services either directly or through a non-BFLP
subsidiary in the BLP Countries. BFLP, BLP and their affiliates do not provide investment advice, and nothing herein shall constitute an offer
of financial instruments by BFLP, BLP or their affiliates.

Bloomberg® 06/25/2020 23:02:35