The Periodic Table of Scarcity and Abundance Fe Iron
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Iron: What it 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 3 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 1998 dollars
0 25 50 75 1900 1925 1950 1975 2000
USD/t. Unit value of US usable iron ore (mostly pellets), US dollars of 1998 per tonne of ore. A US domestic value, not a world spot price7
Show the numbers
YearUSD/t
190047.45
190532.18
191043.33
191529.52
192033.41
192523.33
193027.84
193529.52
194029.19
194525.18
195033.72
195543.35
196048.23
196549.38
197045.38
197564.88
198072.4
198563.68
199038.08
199530.27
200024.21
200537.15
201073.84
201555.84
201649.65
201752.23
201860.37
201959.25
202057.48
202185.29

The USGS long series is the unit value of US iron ore, in 1998 dollars. It stayed between about US$23 and US$50 per tonne from 1900 to 1970. It rose to US$73 in 1979, fell to US$22 in 2001 and reached US$85 in 20217.

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%)8. The Western Australian Treasury Corporation gives 70%, with a lower world production figure of 2,436 million tonnes9. Australia exported 902 million tonnes and Brazil 389 million. South Africa and Canada each exported about 61 million tonnes8.

China imported 1,238 million tonnes, about 73% of world imports (1,238 ÷ 1,690 million tonnes)8. 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 20248.

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 production8.

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), 'Iron ore, cfr spot'; Description sheet; file updated 2 September 2026.

    Iron ore price, annual averages 1960 to 2025. 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
    • 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 realised 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

    U.S. Geological Survey (T.D. Kelly, W.S. Kirk, J.D. Jorgenson, C.C. Tuck), 2024. Iron ore statistics, in Historical Statistics for Mineral and Material Commodities in the United States (Data Series 140) , ds140-iron_ore-2021.xlsx, columns 'World production' and 'Unit value (98$/t)'.

    World usable iron ore production 1905 to 2021 and US unit value of iron ore in 1998 dollars.

    • Unit value (98$/t) ... 47.45 ... 85.29
    • Unit value (98$/t)
  8. 8

    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
  9. 9

    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