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What iron costs

What does it cost, and how is it bought and sold?

Iron ore sold for about US$100 per dry tonne in 2025 (62% iron, delivered to China), or about 16 US cents per kilogram of iron. Australia and Brazil sell most of the ore, and China buys almost three quarters of what is traded.

Last updated 5 October 2026.

Price

Price

$0.16per kg1

2025. Iron ore fines, 62% Fe, spot, CFR China (the price includes freight to China). 2025 average US$100.2 per dry tonne of ore ÷ 620 kg of iron per tonne = US$0.162 per kg of contained iron.

Value of a year's output

~ $260billion a year1

2025. Our calculation, not a published value: 1.6 billion t of iron in mined ore (USGS) × US$161.6 per t of iron (US$100.2 per dry t of 62% fines ÷ 0.62) = US$259 billion, rounded to 260. The same price × 2.6 billion t of usable ore gives US$261 billion.

Probably higher than the real value of the ore. The benchmark price includes freight to China. Australian ore sold for US$90 per dry t at the port in 2025 (Rio Tinto). US mines reported US$89 per t. Much ore is lower in grade or used in the country where it is mined. Pellets and lump sell at a premium, so it is not a strict upper limit.

The main price for iron ore is for fines with 62% iron, delivered to a port in China (CFR, cost and freight). The World Bank gives an average of US$100.2 per dry tonne for 20251. In September 2026 the monthly average was US$97.72. Australia’s Department of Industry, Science and Resources gives US$87 a tonne for 2025. Its price is for 62% ore loaded in Australia (free on board, FOB), without freight3.

A tonne of 62% ore holds 620 kg of iron. The 2025 CFR price is therefore about US$0.16 per kilogram of contained iron (100.2 ÷ 620). Ore with less iron or more impurities sells for less. Rio Tinto received an average of US$90 per dry tonne FOB for its Pilbara ore in 20254.

In the United States, mines reported an average value of US$89 per tonne of usable ore in 20255. US steel scrap (No. 1 heavy melting, delivered) averaged about US$319 per tonne6.

At the 62% CFR price, the 1.6 billion tonnes of iron mined in 2025 would be worth about US$260 billion (1.6 billion × US$161.6 per tonne)51. We know of no published value for this total. It is probably too high. The price includes freight to China, and much ore is lower in grade or is used in the country where it is mined. For one country there is a published value: Australia’s iron ore exports were worth an estimated A$117 billion in 2025–263.

Price history

Price over time, in 2010 dollars
0 0.1 0.2 1960 1980 2000 2020 Spot price, delivered to China
USD/kg. US dollars of 2010 per kilogram of iron in the ore, world benchmark. Our conversion of the World Bank series: to 2005 the price is in US cents per dry metric tonne unit (1% iron in a tonne, so 10 kg of iron), divided by 1,000; from 2006 it is in US dollars per dry tonne of ore, divided by 635 kg of iron (63.5% iron, 2006 to 2008) or 620 kg (62% iron, from 2009). The World Bank changed to 62% ore in December 2008, so the 2008 average is mostly 63.5% ore. The World Bank adjusts for inflation with its Manufacturers Unit Value Index (MUV). To 2005: the yearly contract price for Brazilian ore at the Brazilian port (Itabira ore to 1986, Carajás sinter feed from 1987). From 2006: the spot price for fines delivered to China, which includes freight. The two are not the same price, so the line is not joined1
Show the numbers
YearUSD/kg
19600.0597
19610.0565
19620.0554
19630.0565
19640.0517
19650.0534
19660.046
19670.0424
19680.0423
19690.0451
19700.0424
19710.0423
19720.0388
19730.0334
19740.0355
19750.0414
19760.0537
19770.0504
19780.0404
19790.0396
19800.0431
19810.043
19820.0513
19830.047
19840.0434
19850.0445
19860.0383
19870.0336
19880.0303
19890.0349
19900.0393
19910.0424
19920.0397
19930.0337
19940.0316
19950.0309
19960.0333
19970.0351
19980.0377
19990.0342
20000.0362
20010.0392
20020.0387
20030.0401
20040.0446
20050.0741
20060.1214
20070.203
20080.2389
20090.1337
20100.2353
20110.2437
20120.1881
20130.1989
20140.1445
20150.0921
20160.1002
20170.119
20180.1105
20190.1521
20200.1795
20210.2384
20220.1666
20230.1705
20240.1532
20250.1392

The chart shows the World Bank series from 1960 to 2025, adjusted for inflation to US dollars of 20101. We converted it to a price per kilogram of iron, so that it has the same unit as the price above. The steps and the change of price in 2006 are in the paragraphs below and in the note under the chart. In 2010 dollars, the contract price fell from about 6 US cents per kilogram of iron in 1960 to about 3 cents in 1988. The spot price was highest in 2011, at about 24 cents, and was about 14 cents in 20251.

For decades, iron ore was sold under annual contracts between large miners and steel mills. In its series, the World Bank uses the contract price for Brazilian ore sold to Europe until 2005. From 2006 it uses a spot price for ore delivered to China1. From 1990 to 2004 the contract price was 26.5 to 37.9 US cents per dry metric tonne unit (dmtu). A dmtu is one percentage point of iron in a dry tonne1. That is US$26.5 to US$37.9 per tonne of iron, against about US$162 per tonne of iron at the 2025 spot price (100.2 ÷ 0.62). The contract price was for ore loaded in Brazil. The spot price includes freight. Neither price is adjusted for inflation.

The spot price averaged US$156 per dry tonne in 2008 and US$80 in 2009. It reached US$168 in 2011, the highest annual average in the series. It fell to US$56 in 2015, rose to US$162 in 2021, and eased to US$100 in 20251. In the June 2026 issue of its Resources and Energy Quarterly, the Australian government forecast US$91 a tonne for 2026 (61% iron, FOB)3.

How it is traded

About two thirds of iron ore crosses a border. In 2024 world exports were 1,741 million tonnes, out of 2,605 million tonnes produced (67%)7. The Western Australian Treasury Corporation gives 70%, with a lower world production figure of 2,436 million tonnes8. Australia exported 902 million tonnes and Brazil 389 million. South Africa and Canada each exported about 61 million tonnes7.

China imported 1,238 million tonnes, about 73% of world imports (1,238 ÷ 1,690 million tonnes)7. Shipments to China from Australia, Brazil and South Africa were 1,080 million tonnes in 20253. Japan imported 96 million tonnes and Germany 35 million in 20247.

China Mineral Resources Group buys ore for close to 80% of Chinese steel mills. It restricted purchases of some BHP products late in 2025. It lifted the restriction after a new long-term agreement with BHP in April 20263.

Steel itself is also traded. World steel exports were 456.5 million tonnes in 2025, 26.4% of finished steel production7.

The United States exported about 13 million tonnes of ferrous scrap in 2025. In the first eight months, the largest buyers by tonnage were Turkey (29%), Bangladesh (13%) and India (10%)6.

Sources

  1. 1

    World Bank, 2026. Commodity Price Data (The Pink Sheet), annual and monthly prices , Annual Prices (Nominal) and Annual Prices (Real), 'Iron ore, cfr spot'; Description and Definitions sheets; file updated 2 September 2026.

    Iron ore price, annual averages 1960 to 2025, nominal and in real 2010 US dollars (deflated by the MUV index). Contract price for Brazilian ore in US cents per dry metric tonne unit to 2005, spot price in US dollars per dry tonne after.

    • Iron ore, cfr spot ... 2025 ... 100.2
    • Iron ore, cfr spot … 2025 … 100.2
    • real 2010 US dollars ... Iron ore, cfr spot ... Unit dmtu denotes dry metric ton unit , i.e. 1% Fe-unit ... deflated by the Manufacturers Unit Value Index (MUV)
    • real 2010 US dollars … Iron ore, cfr spot … deflated by the Manufacturers Unit Value Index (MUV)
    • Iron ore, cfr spot … 1960 … 59.7 … 1988 … 30.3 … 2011 … 151.1 … 2025 … 86.3
    • For years 2008 (December) to present, spot, (any origin) fines, 62% Fe, c.f.r. China; during 2006 to 2008 (November) spot, 63.5%Fe. Earlier data refer to annual contract prices (Brazil for Europe,)
    • VALE Carajas mines sinter feed, f.o.b. Ponta da Madeira during years 1987-2009 … Unit dmtu denotes dry metric ton unit , i.e. 1% Fe-unit
    • Iron ore, cfr spot … 2008 … 156 … 2011 … 167.8 … 2015 … 55.9 … 2021 … 161.7
  2. 2

    World Bank, 2026. Commodity Price Data (The Pink Sheet), monthly prices , Monthly Prices, 'Iron ore, cfr spot', 2026M09; file updated 2 October 2026.

    Iron ore price, 62% Fe fines CFR China, monthly averages.

    • Iron ore, cfr spot … 2026M09 … 97.7
  3. 3

    Australian Government, Department of Industry, Science and Resources (Office of the Chief Economist), 2026. Resources and Energy Quarterly: June 2026 , Chapter 3 Iron ore: sections 3.1, 3.2, 3.3; Table 3.3 Iron ore outlook.

    Second price source (US$87/t FOB in 2025), 2026 price forecast, Australian iron ore export earnings, shipments to China, the CMRG restriction on BHP, and the steel output forecast to 2031.

    • Table 3.3: Iron ore outlook World Unit 2025 … nominal US$/t 87 … Spot price, 61% iron content, fob Australian basis (only 2025 price is for 62% iron content)
    • Lower prices will reduce Australia’s iron ore export earnings from $117 billion in 2025–26
    • The benchmark iron ore price (61% Fe) is forecast to average US$91 a tonne in 2026
    • Combined shipments to China from Australia, Brazil and South Africa … were 1,080 Mt in 2025
    • Mineral Resources Group (CMRG), Beijing’s central buying desk which represents close to 80 per cent of Chinese steel mills, lifted its months-long restriction on BHP iron ore purchases after BHP executives visited China and the two parties signed a new long-term sales agreement in April 2026 … restrictions imposed on some BHP products in the last quarter of 2025
  4. 4

    Rio Tinto, 2026. Final Results: 2025 annual results (regulatory announcement, RNS) , Iron Ore section.

    Pilbara shipments, unit cash cost and realized price in 2025; first Simandou shipment.

    • Average Pilbara iron ore realised price (US$ per dry metric tonne, FOB basis) 90.0
  5. 5

    U.S. Geological Survey (C.C. Tuck), 2026. Iron Ore, in Mineral Commodity Summaries 2026 , p. 2, World Mine Production and Reserves table; World Resources.

    World mine production, reserves and resources of iron ore and its iron content, 2024 and 2025.

    • Price, average unit value reported by mines, dollars per metric ton
    • Iron content … World total (rounded)
  6. 6

    U.S. Geological Survey (C.C. Tuck), 2026. Iron and Steel Scrap, in Mineral Commodity Summaries 2026 , p. 1, Recycling.

    US scrap recycling rates by end use and the raw materials saved by recycling.

    • The annual average price delivered in 2025 was estimated to increase to $319.00 per ton
    • Exports … In the first 8 months of 2025, Turkey was the primary destination for exports of ferrous scrap, by tonnage, accounting for 29% of total exports, followed by Bangladesh, 13%, and India, 10%
  7. 7

    World Steel Association (worldsteel), the steel industry's association, 2026. World Steel in Figures 2026 , Sustainability indicators; Top 50 companies; Major steel-producing countries; Production by process; Pig iron; DRI; Iron ore 2024; Steel use by sector (p. 30).

    Crude steel, pig iron and DRI output by country, top companies, iron ore trade, emissions and energy per tonne of steel.

    • World … 2 604.5 … 1 740.5
    • Australia … 901.6 … Brazil … 389.2 … South Africa … 61.2 … Canada … 60.9
    • China 1 … 1 238.2 … 1 689.5
    • Japan … 96.4 … Germany … 34.9
    • Exports are of finished and semi-finished … 456.5 … 1 731.2 … 26.4
  8. 8

    Western Australian Treasury Corporation, 2026. Western Australia Iron Ore Profile: January 2026 .

    Western Australia's iron ore royalties, jobs, exports and buyers, world imports, and the output of Rio Tinto, BHP and Fortescue.

    • Global iron ore production was 2,436 million tonnes in 2024 … The share of iron ore trade to global iron ore production increased from 54% in 2004 to 70% in 2024