The lower price for the 58% – 61% Fe or so fines Fortescue does ship can be used by steel mills to lower costs, but usually the superior ores from the big three win out, especially Vale and its 65% Fe fines product (which Vale can't supply enough of because of the huge distance to China from northern Brazil). In commentary Fortescue said: "In a strong start to FY23, mining, processing, rail and shipping combined to deliver record first quarter iron ore shipments of 47.5mt, four per cent higher than the prior comparable period. This reflects strong operating performance across the supply chain and availability of inventory. "The C1 cost of US$17.69/wmt was three per cent higher than the previous quarter, and 16 per cent higher than Q1 FY22, largely reflecting the price escalation of key input costs, including diesel and labour rates, partly offset by a lower AUD:USD exchange rate."