Insight
| |
7 Pages

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
Requester's name : .............
Department : .............
Authoriser's Name : .............
Authoriser's signature : .............
Date : .............
Cost Centre : .............

Questions about this report?

Frequently Asked Questions

Mailenquiries@woodmac.com
  • Europe: +44 131 243 4699
  • Americas: +1 713 470 1900
  • Asia Pacific: +61 2 8224 8898
contact us

Why Wood Mackenzie?

Wood Mackenzie, a Verisk Analytics business, has been a trusted source of commercial intelligence for the world's natural resources sector for more than 40 years, empowering clients to make better strategic decisions with objective analysis and advice.

We work across every sector of oil, gas, power, renewables, chemicals, metals and mining, covering more than 150 countries. Our proprietary data and models are at the core of everything we do, ensuring our independent asset and company valuations are thoroughly robust and that we offer an accurate forward-looking view of economic indicators such as market supply, demand and price trends.

Our 500+ analysts are based in the regions they cover, cultivating an unrivalled depth of understanding to help clients accurately identify new opportunities, define their strategy and improve business performance.

At every stage, our teams readily collaborate and share their insight to provide an integrated perspective across entire industries. It is this unique and rigorous analytical approach that ensures we are recognised as the industry standard by the world’s most innovative organisations.