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China: An update on key iron ore cost drivers


China: An update on key iron ore cost drivers

Report summary

Our research on 106 iron ore assets shows China's average total cash cost has increased slightly by 0.7% year-on-year in 2013 to US$82/tonne. C1 cash costs have increased 5% although this has been offset by a 12% reduction in royalties and levies. The key cost drivers that had an upward pressure on costs were increased salaries and further appreciation of the Chinese currency. Also helping moderate the cost increase was a decline in diesel prices and a roll-over of electricity tariffs for...

What's included?

This report includes 2 file(s)

  • China: An update on key iron ore cost drivers PDF - 532.47 KB 7 Pages, 0 Tables, 9 Figures
  • China: An update on key iron ore cost drivers XLS - 571.50 KB

Description

This Metals Insight report highlights the key issues surrounding this topic, and draws out the implications for those involved.

For industry participants and advisors who want to look at the trends, risks and issues surrounding this topic, this report gives you an expert point of view to help inform your decision making.

Our analysts are based in the markets they analyse and work with high-quality proprietary data to provide consistent and reliable insight.

We provide unique in-depth analysis of the metals supply industry so you can make confident strategic decisions.

  • Executive summary
  • China iron ore cost movements
    • Diesel and electricity
    • Labour
  • Consumables
  • Grey costs and overheads
  • Outlook for China iron ore mine cost

In this report there are 9 tables or charts, including:

  • Executive summary
  • China iron ore cost movements
    • Average change in total cash cost by province
    • Iron ore industry salaries have grown rapidly
    • China labour costs to increase further
  • Consumables
  • Grey costs and overheads
    • Summary of cost changes 2012-2013
    • 2013 China cost curve by company type (US$/dmt 62% Fe equivalent)
  • Outlook for China iron ore mine cost
    • Raw ore grade at new projects below average
    • Cost outlook* and exchange rate
    • China: Weighted average total cash cost components
    • China: An update on key iron ore cost drivers: Image 9
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