Value-in-use iron ore costs Q1 2023 Report

Insight 17 March 2023

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*Please note that this report only includes an Excel data file if this is indicated in "What's included" below

Report summary

The average global value-in-use iron ore cost for Q1 2023 is US$53/dry tonne (62% Fe fines basis, CFR China), this is down 2% compared to last quarter and up 15% compared to the same period last year. Underlying operating costs start to decrease and lower oil prices and, up to an extent, deflationary pressures slow down the rise in costs. We expect our cost estimates to be skewed to the downside in the future. Both lump and pellets premiums drop in this quarter due to poor steel mill margins and high port stock levels, and we have revised down our Fe adjustments and made minor changes to impurity value-in-use assumptions. Global cash margins have risen to 57% in Q1 2023 from 45% in Q4 2022, driven by higher prices.

Lump premiums continue to drop, and pellet premiums start to go down
Fines and impurities
VIU assumptions

Tables and charts

This report includes the following images and tables:

VIU adjusted cost by country (CFR China)
VIU adjusted cost by percentile (CFR China)
Seaborne iron ore cash costs by operator 2023 (CFR China, 62% Fe fines unadjusted)
Seaborne iron ore cash costs by operator 2023 (CFR China, 62% Fe fines equivalent)
2023 China value-in-use adjusted cost curve (62% Fe fines equivalent)