Ann: September Quarterly Production Report, page-42

Fortescue has always received less than the benchmark price because the vast majority of its products contain between 56 per cent and 59 per cent iron, but the size of the penalty has varied dramatically over the years in line with supply and demand factors in the iron ore market.

Cost of shipping ore to Asia rises

Unit costs in the past three months rose 20 per cent from the year-earlier period, reflecting severe inflationary pressures in Western Australia’s Pilbara iron ore heartland.

Those unit costs do not include the cost of shipping ore to Asia, which also has blown out dramatically in recent months.

The industry’s preferred price provider, S&P Global Platts, said ore with 58 per cent iron was fetching $US75.75 per tonne on Wednesday; a price that was 63.3 per cent of the benchmark iron ore price.