The weighted average cost of North China delivered iron ore is US$35.9/dmt (62% Fe), US$1.3/dmt less than our Q1 2016 estimate. Global average delivered costs have dropped by 41% since we first starting publishing this insight in 2013. But further cost reductions will be difficult. The first half of 2016 has seen a rise in oil prices, some strengthening of iron ore exporting country's currencies and a small rise in freight costs. If these macro trends continue it's likely iron ore costs will start to rise.