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Value-in-use iron ore costs Q1 2026
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Report summary
The average global value-in-use (VIU) iron ore cost for Q1 2026 is US$63.6/t on a 62% Fe fines, CFR China basis. This cost is up 5.2% from Q4 2025 and 14.5% year-on-year. The average global value-in-use (VIU) iron ore cost for Q1 2026 is US$60.4/t on a 61% Fe fines, CFR China basis. We have updated Indian, Brazilian and South African iron ore costs for Q1 2026. Rising diesel and fuel oil prices will further increase mine-site operating costs and inland transportation expenses. Extended conflict would likely sustain cost inflation across the iron ore supply chain into 2026. A weaker US dollar in 2026 will modestly lift dollar-denominated iron ore costs. However, if oil prices continue to climb and inflation expectations remain elevated, the Federal Reserve is likely to delay interest rate cuts, keeping the dollar stronger for longer. This could partially offset the upward pressure on iron ore costs driven by rising oil prices.
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