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Iranian iron ore prices under pressure amid rising production costs

The latest report from the Iranian Iron Ore Association reveals notable fluctuations in the prices of iron ore across various grades. The data, covering the period from February 24 to 28, 2025. , highlights the diverse pricing trends for hematite and magnetite iron ore, as well as iron ore concentrate and pellets.

Iranian iron ore prices under pressure amid rising production costs

The Iranian Iron Ore Association has released its latest (FOB) price report for iron ore exports, covering the period from February 24 to February 28, 2025. The report details the pricing trends for three key categories:

Hematite iron ore (Granulated), iron ore concentrate, and iron ore pellet fines.

Hematite Iron Ore Prices Under Pressure

The FOB prices for granulated hematite iron ore remain significantly low despite rising production costs. 62% Fe hematite ore is priced at USD 71.89 per ton, while lower-grade ore (49% and below) stands at just USD 22 per ton. Industry insiders highlight that the current pricing does not reflect the increasing financial burden on producers, which includes higher government royalties, increased operational expenses, the devaluation of the national currency, and severe inflation.

Additionally, the hematite iron ore market has been experiencing a steady decline over the past few years due to unhealthy competition, which has hindered industry progress instead of fostering growth. Experts stress that this downward trend must be addressed through regulatory measures to restore stability. The Hematite Committee and the Iron Ore Association of Iran are being urged to review pricing mechanisms to ensure sustainability for producers.

Fe Content (%)

 

FOB Price (USD/ton)

 

62

71,89

61

68,06

60

63,2

59

59,26

58

55,31

57

51,36

56

47,41

55

43,46

54

37,02

53

33,07

52

29,12

51

25,17

50

21,16

49 & below

20

62

75,1

61

71,15

60

67,2

59

63,26

58

59,31

57

55,36

56

51,41

55

47,46

54

41,52

53

37,57

52

33,62

51

29,67

50

25,72

49 & below

22

Iron Ore Concentrate Prices

The iron ore concentrate segment maintained stronger pricing, with 67% Fe content leading at $89.07 per ton. Prices progressively declined for lower grades, with 61% Fe concentrate priced at $65.86 per ton. This reflects the sustained global demand for higher-purity iron ore, particularly for steel production.

Fe Content (%)

 

FOB Price (USD/ton)

 

67

89,07

66

85,2

65

81,34

64

77,48

63

73,6

62

69,73

61

65,86

Iron Ore Pellet Prices

Iron ore pellets, produced from concentrate, showed the highest prices among all categories. The highest price was for pellets with a grade of 76%, priced at $104.10 per ton. The lowest price was for pellets with a grade of 16%, priced at $78.10 per ton. Other prices include:

Fe Content (%)

 

FOB Price (USD/ton)

 

67

104,1

66

99,76

65

95,43

64

91,1

63

86,76

62

82,43

61

78,1

Iron Ore Pellet Fines Prices

Iron ore pellet fines saw a pricing range between $67.61 per ton for 67% Fe pellets and $50.69 per ton for 61% Fe pellets. The narrowing gap between pellet fines and concentrates suggests a stable market for processed iron ore products, which remain crucial for blast furnace efficiency in steelmaking.

Fe Content (%)

 

FOB Price (USD/ton)

 

67

67,61

66

64,79

65

61,97

64

59,15

63

56,33

62

53,51

61

50,69

The latest FOB prices indicate that high-grade iron ore remains in strong demand, commanding premium prices, while lower-grade iron ore faces downward pressure. Factors such as global steel production trends, Chinese demand, and freight costs will continue to shape Iran’s iron ore export market in the coming weeks.

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