Insight
Value-in-use iron ore costs Q1 2023
This report is currently unavailable
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.
Table of contents
- Lump premiums continue to drop, and pellet premiums start to go down
- Fines and impurities
- VIU assumptions
Tables and charts
This report includes 5 images and tables including:
- 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)
What's included
This report contains:
Other reports you may be interested in
Commodity Market Report
Global iron ore strategic planning outlook – Q1 2024
Iron ore price set to ease as Chinese demand declines gradually
$10,000
Asset Report
Karara Phase 1 iron ore mine
Karara is 100% owned by Chinese steelmaker Ansteel, and is expected to produce 8 Mtpa, which is nameplate capacity.
$2,250
Asset Report
Sino Iron iron ore mine
Sino Iron is Australia's largest magnetite mine. Concerns over land access for future tailings remain and may impact future production.
$2,250