Value-in-use iron ore costs Q1 2024 Report

Insight 18 March 2024

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Report summary

The average global value-in-use (VIU) iron ore cost for Q1 2024 is US$57.5/t (62% Fe fines basis, CFR China). This is up by 2.2% compared to the last quarter and 8.4% compared to the previous year. The increases in Q1 2024’s iron ore cost are also due to our downward adjustment of pellet premiums and the weaker US dollar we expect in 2024. Lump and pellet premiums continued to fall in Q1 2024 due to low steel mill margins. We have slightly revised up our Fe adjustments from a low base in 2023 and made minor changes to impurity value-in-use assumptions. Global operating margins went down in Q1 2024 to 55% (from 56% in Q4 2023), driven by lower prices.

Executive Summary
- Lump and pellet premiums continued to fall in Q1 2024 due to low steel mill margins.
- Fines and impurities
- Cash margins drop in Q1 2024
- China’s costs and supply
- VIU assumptions

Tables and charts

This report includes the following images and tables:

Q1 2024 Value-in-use adjusted iron ore cost curve (CFR China, 62% Fe fines equivalent)
Q1 2024 VIU adjusted cost by country (CFR China)
Q1 2024 VIU adjusted cost by percentile (CFR China)

Q1 2024 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines unadjusted)
Q1 2024 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines equivalent)
Q1 2024 China value-in-use adjusted cost curve (62% Fe fines equivalent)