Citi: Iron ore prices are expected to bottom around $85.

Citigroup stated that the key cost support level for the iron ore industry is around $85 per ton. The bank indicated that at this price level, approximately 6% of seaborne supply will face production cut risks or will only yield low single-digit profit margins. Citigroup noted that the breakeven price for iron ore producers continues to rise. The bank estimates the industry breakeven price at $66 per ton, an increase of 7% from its last update in May 2025. "The curve indicates that while the margins for major producers in Australia and Brazil remain healthy, the profitability of high-cost producers is facing increasing pressure," the bank said. Citigroup expressed a neutral view on the recent trend of iron ore, with a price forecast of $100 per ton for the 0-3 month period.