China says boosts iron ore concentrate capacity to secure supplies

China has added 50 million metric tons of iron ore concentrate capacity from 2022, state media quoted an official at the industry association as saying on Monday, part of a plan to boost production of the key steelmaking ingredient.

China, the world's top steel manufacturer, needs to import 80% of its iron ore. It has pledged to increase domestic supply to 370 million tons by 2025 from 286 million tons in 2022.

Luo Tiejun, vice chairman of the state-backed China Iron and Steel Association (CISA), was quoted in the China Metallurgical News as saying the 50 million tons of additional capacity was part of the "cornerstone plan".

He did not say how much total iron ore capacity currently was, but said China will further accelerate the construction of key iron ore projects to achieve supply security.

"More than a dozen key iron ore projects have started after the implementation of the plan," said Luo.

China produced 215.46 million tons of iron ore concentrate from January to September, a rise of 1.3% year-on-year, data from the state-backed Metallurgical Mines Association of China (MMAC) showed.

Concentrate supply is expected to rise by 3% on the year to around 295 million tons in 2023, Lei Pingxi, chief engineer at the MMAC told a conference this month.

China will produce around 300 million tons of iron ore in 2024, analysts at China International Capital Corporation (CICC) 601995 said in a research note this month.