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Value-in-use iron ore costs Q2 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 Q2 2023 is US$53.3/dry tonne (62% Fe fines basis, CFR China), this is up 0.6% compared to last quarter and up 2% 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 compared with the costs in 2022. We expect our cost estimates to be skewed to the downside in the future. Both lump and pellets premiums peak in April due to improved steel mill margins then drop in May with the weak steel demand in China and falling steel prices, and we have revised down our Fe adjustments and made minor changes to impurity value-in-use assumptions. Global cash margins have dropped to 51% in Q2 2023 from 58% in Q1 2023, driven by lower prices.
Table of contents
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Executive Summary
- Lump and pellet premiums reached the highest point in April and start to drop then
- Fines and impurities
- China’s costs and supply
- VIU assumptions
Tables and charts
This report includes the following images and tables:
- Q2 2023 Value-in-use adjusted iron ore cost curve (CFR China, 62% Fe fines equivalent)
- Q2 2023 Value-in-use adjusted pellet cost curve (CFR China, 62% Fe fines equivalent)
- Q2 2023 VIU adjusted cost by country (CFR China)
- Q2 2023 VIU adjusted cost by percentile (CFR China)
- Q2 2023 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines unadjusted)
- Q2 2023 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines equivalent)
- Q2 2023 seaborne pellet cash costs by operator (CFR China, 62% Fe fines unadjusted)
- Q2 2023 seaborne iron pellet cash costs by operator (CFR China, 62% Fe fines equivalent)
- Q2 2023 China value-in-use adjusted cost curve (62% Fe fines equivalent)
What's included
This report contains:
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