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Value-in-use iron ore costs Q1 2023

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17 March 2023

Value-in-use iron ore costs Q1 2023

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:

  • Document

    China_delivered_VIU_adjusted_costs_Q1 2023.xlsx

    XLSX 1.21 MB

  • Document

    Value In Use Adjusted Iron Ore Costs Methodology.pdf

    PDF 207.09 KB

  • Document

    Value-in-use iron ore costs Q1 2023

    PDF 839.48 KB