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China iron ore cost summary

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15 December 2017

China iron ore cost summary

Report summary

China's iron ore total cash costs have risen for the first time since 2013 primarily because of higher diesel prices. Domestic production has also declined as high cost producers who exited the market over the past 2 years have not returned despite stronger iron ore prices. Costs are expected to remain steady in 2018 but rise again in 2019 as higher fuel prices impact again. However, cost increases are likely to be gradual and unlikely to reach previous highs. The declining trend in domestic production is expected to continue as China's iron ore industry remains fragmented, low grade and high cost and will be replaced with lower cost imports from Australia and Brazil. 

Table of contents

  • Executive summary
  • Location maps
  • Key companies
  • Geology
    • Raw ore Fe grade 2017
    • Product ore Fe grade 2017
  • Reserves and resources
    • Anshan-Benxi region
    • East Hebei region
    • Lvliang-Taiyuan-Xinzhou region
    • Hanxing-Luzhong region
    • Baotou-Baiyunebo region
    • Anhui region
    • Hubei region
    • Panzhihua-Xichang region
    • Domestic iron ore infrastructure
    • Imported iron ore infrastructure
    • Cash costs
      • 62% Fe adjusted CFR cost curve to Tia
    • Capital costs
    • Average operating margin
    • Taxes and Fees Imposed on Chinese Mining Companies
      • Standard taxes
      • Unstandardised Fees and Taxes
    • Standard Taxes
      • Iron Ore Resource Tax
      • Corporate Income Tax
      • Value Added Tax (VAT)
      • Education Tax
      • City Building Tax
    • Unstandardised taxes
      • Local Taxes and Fees

Tables and charts

This report includes 14 images and tables including:

  • China iron ore producing regions
  • Attributable marketable production by company - costed production
  • Geology
  • Marketable production
  • Costed production by mine type
  • Quality: Image 1
  • Quality: Image 2
  • Imported iron ore flows
  • Capital costs
  • Margins: Image 1
  • Costs: Image 1
  • China full iron ore cost curve 2017 62% Fe adjusted
  • Fiscal terms: Table 1
  • Fiscal terms: Table 2

What's included

This report contains:

  • Document

    China country report.xlsx

    XLSX 543.63 KB

  • Document

    China iron ore cost summary

    PDF 813.53 KB

  • Document

    China iron ore cost summary

    ZIP 2.14 MB

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