Value-in-use iron ore costs Q1 2025 Report

Insight 01 April 2025

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Report summary

The average global value-in-use (VIU) iron ore cost for Q1 2025 is US$55.6/t (62% Fe fines basis, CFR China). This cost is down 7.2% from the previous quarter and 3.3% from the same time in 2024. We expect a slight decline in energy prices for Q1 2025 quarter-on-quarter but pressure from rising labour costs and general inflation persists. In 2025, a strong dollar will offset increases in costs denominated in local currencies. We have updated Indian and African iron ore costs for Q1 2025.

Executive summary
Lump premiums rose, but pellet premiums fell in Q1 2025
Fines and impurities
Cash margins of Australia and Brazil to rise in Q1 2025
China’s costs and supply
VIU assumptions

Tables and charts

This report includes the following images and tables:

Q1 2025 value-in-use adjusted iron ore cost curve (CFR China, 62% Fe fines equivalent)
Q1 2025 VIU adjusted cost by country (CFR China )
Q1 2025 VIU adjusted cost by percentile (CFR China)

Q1 2025 seaborne iron ore cash costs by operator (CFR China, unadjusted for quality)
Q1 2025 seaborne iron ore cash costs by operator (CFR China, 62% Fe fines equivalent)
Q1 2025 China value-in-use adjusted cost curve (62% Fe fines equivalent)