Insight
Value-in-use iron ore costs Q2 2026
*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 (VIU) iron ore cost for Q2 2026 is US$66.8/t on a 62% Fe fines basis, CFR China. This cost has increased by 5.0% from Q1 2026 and is 14.1% higher than the previous year. The average VIU iron ore cost for Q2 2026 on a 61% Fe fines basis, CFR China, is US$64.1/t. We have updated iron ore costs for Australia, Brazil, Russia, Ukraine and the North American region for Q2 2026. Q2 2026 iron ore production costs rose sharply due to the Middle East conflict and the blockade of the Strait of Hormuz, which pushed international oil prices above US$100 per barrel and nearly doubled Singapore diesel prices. Since mining operations across extraction, inland logistics and beneficiation are heavily dependent on diesel and electricity, this energy inflation directly increased C1 cash costs throughout the production chain.
Table of contents
- Executive summary
- Market dynamics
- The freight rate
- Lump premiums and pellet premiums rise sharply in Q2 2026
- Fines and impurities
- Global cash margin to decrease marginally in Q2 2026
- China’s costs and supply
- VIU assumptions
Tables and charts
This report includes the following images and tables:
-
Q2 2026 VIU adjusted iron ore cost curve (CFR China, 62% Fe fines equivalent)Q2 2026 VIU adjusted iron ore cost curve (CFR China, 61% Fe fines equivalent)Q2 2026 VIU adjusted cost by country (CFR China) - 62%
-
Q2 2026 VIU adjusted cost by percentile (CFR China) - 62%Q2 2026 VIU adjusted cost by country (CFR China) - 61%Q2 2026 VIU adjusted cost by percentile (CFR China) - 61%Q2 2026 seaborne iron ore cash costs by operator (CFR China, unadjusted for quality)Q2 2026 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines equivalent)Q2 2026 seaborne iron ore cash costs by operator (CFR China, 61% Fe fines equivalent)Q2 2026 China value-in-use adjusted cost curve (62% Fe fines equivalent)Q2 2026 China value-in-use adjusted cost curve (61% Fe fines equivalent)
- 2 more item(s)...
What's included
This report contains:
Other reports you may be interested in
Insight
Value-in-use iron ore costs Q3 2026
Q3 2026 iron ore value-in-use adjusted costs are up 1.3% compared to last quarter, and margins are below 40% in Q3 2026.
$5,000
Insight
Value-in-use iron ore flex cost curve - Q3 2026
VIU-adjusted iron ore cost curves for 220+ producers globally. Interactive benchmarking tool for 2009-2040 scenario analysis.
$1,050
Asset Report
Roy Hill iron ore mine
Roy Hill is a large hematite mine in the Pilbara region of Western Australia. The Production capacity has been increased, reaching 60 Mtpa.
$2,250
