China Iron Ore Miners' Profits Rose 62% On Year -Association

China Iron Ore Miners' Profits Rose 62% On Year -Association.
Staff Reporters Dow Jones
MetalSource Steel

BEIJING (Dow Jones)--China's domestic iron ore mining industry profits rose 61.7% on year in the first half of the year to CNY44.3 billion, sharply higher compared with the rest of the steel industry, the China Iron and Steel Association said Friday.
In comparison, steelmakers' profits rose 22% on year to CNY155 billion, the association said in a report, citing the National Development and Reform Commission. The data didn't specify if these were net profits.
Steel mills have been turning increasingly to domestic ore, as import prices have risen as much as 13% this year. Domestic ore output in the first seven months rose 22% compared to the same period a year earlier to 691.9 million metric tons, the National Bureau of Statistics said last week.
Since China's crude steel output has fallen slightly in recent weeks on macroeconomic concerns, amid lower downstream steel prices, Chinese steel mills are operating at or close to their cost of production, Steel Market Intelligence said in a report.
Major steelmakers have been developing local sources of iron ore to reduce dependence on imports. Hebei Iron & Steel Group, China's largest steelmaker, told the state-run Xinhua news agency last week it plans to source iron ore from its own mines for 50% of its needs within five years, compared to 9% currently.