AFFORDABLE PRICES OF IRON ORE

摘要

Using our information on steel production costs, we were able to assess the prices that steelmakers can afford to pay for iron ore depending on the price their finished steel products fetch on the market. This provides a guide to the level of iron ore spot prices that may be sustainable on a delivered basis at any point in time. The analysis is based on the average costs of production in 5 key steelmaking regions when we vary the price of iron ore, but leave all other steelmaking costs unchanged as per Q4 2012 conditions.