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3 Pages

China delivered iron ore costs Q3 2016

China delivered iron ore costs Q3 2016

Report summary

We have improved our method for quality-adjusting China delivered iron ore costs. We are now using value-in-use (VIU) adjustments where we adjust costs for iron, silica and alumina content as well as lump and pellet premia. In the past we adjusted costs based on iron content alone. The change in methodology has led to a US$3/dmt fall in the weighted average North China delivered quality-adjusted cost from last quarter to US$32.77/dmt. Under our previous methodology, average quality-adjusted China delivered costs would have increased by US$0.30/dmt this quarter, mostly because of slightly higher sea freight costs.

What's included?

This report includes 2 file(s)

  • China delivered iron ore costs Q3 2016 PDF - 285.01 KB 3 Pages, 1 Tables, 3 Figures
  • China delivered costs Q3 2016.xls XLS - 678.50 KB


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  • Improved quality adjusted costs
  • Rise in VIU penalties has pushed up quality-adjusted costs for low-grade suppliers

In this report there are 4 tables or charts, including:

  • Improved quality adjusted costs
    • North China delivered cash cost curve (adjusted to 62% Fe fines basis)
    • Cost comparison: adjusted and un-adjusted costs
  • Rise in VIU penalties has pushed up quality-adjusted costs for low-grade suppliers
    • Delivered costs by country
    • Evolution of CFR North China cash cost
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