December 2nd, 2025
CCM Market Insight (November, 2024)
Raw material supply:
The ore supply is still of extreme shortage, and it won't become any better till the end of this year.
For higher grade ore, siuation is even worse. Some factories stop producing CCM over 92% because no suitable materials available, some are even not able to produce 90% and they trickily sell 88% purity as 90%.
Government may give clearer guideline on mining quotas of 2025 in late December so that from January the new policy can be implemented.
It's predicted that the minging capacity will be further restrainted in 2025, the volume released will be less than that of 2024.
On the other hand, even if annual mining capacity is confirmed, the government may require to mine based on quarterly capacity instead of yearly.
For example, if the annual mining capacity is 120,000 tons, then only 30,000 tons are allowed to be mined each quarter. In this way the mining will be continuously maintained in a very controlled status.
That means there won't be a large quantity of ore rushed into the market right after new mining capacity is released to make the price reduce significantly.
Accordingly, prices of finished products will remain high but relatively stable.
Price trend:
Finished product price for CCM 85%/87%/90% powder has been increased by another 50-80rmb/ton compared to October.
As the shortage of ore will be lasting, prices are expected to continue increasing in December.
