Value-in-use iron ore costs Q4 2023 Report

Insight 14 December 2023

This report is currently unavailable

Share link

First name
Last name
Job Title
Company
Email
Telephone

Country

Message

Consent

Please keep me informed about Wood Mackenzie products, services and events.

Submit Category

For details on how your data is used and stored, see our Privacy Notice.

- FAQs about online orders
- Find out more about subscriptions

*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 Q4 2023 is US$56.2/t (62% Fe fines basis, CFR China). This is up by 4.4% compared to the last quarter and up 3.8% compared to the previous year. The increases in Q4’s iron ore cost are also due to our downward adjustment of the spread between high-grade and low-grade fines as well as pellet premiums. Lump premiums rebounded in Q3, but low steel mill margins hit the lump and pellet premiums. With low margins of Chinese steel mills due to more robust raw materials prices, we have revised down our Fe adjustments and made minor changes to impurity value-in-use assumptions. Global operating margins went up in Q4 2023 to 54% (from 53% in Q3 2023), driven by higher prices.

Executive Summary
- Lump premiums rebounded in Q3, but low steel mill margins hit the lump and pellet premiums.
- Fines and impurities
- VIU assumptions

Tables and charts

This report includes the following images and tables:

Q4 2023 Value-in-use adjusted iron ore cost curve (CFR China, 62% Fe fines equivalent)
Q4 2023 VIU adjusted cost by country (CFR China)
Q4 2023 VIU adjusted cost by percentile (CFR China)

Q4 2023 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines unadjusted)
Q4 2023 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines equivalent)
Q4 2023 China value-in-use adjusted cost curve (62% Fe fines equivalent)