Iron ore is used primarily in the steel making process where it is smelted in a blast furnace ("BF") with coke and limestone to produce molten pig iron, an intermediate product that is subsequently converted to steel. Steel is one of the fundamental building blocks of modern society and is generally considered to be a critical driver of economic and industrial development. Its end-market applications cover a wide range of industries including construction, engineering, heavy machinery, pipes and tubes, energy, automotive, packaging and appliances.

Steel is made through two production methods (i) in Basic Oxygen Furnaces ("BOF"), which is the most common production method, responsible for approximately 74% of global crude steel production in 2017, and (ii) in Electric Arc Furnaces ("EAF"), which are mostly found in the U.S., followed by India, and Turkey. Iron ore concentrate is used to make sinter or iron ore pellets, which, along with iron ore lump, are the primary raw materials used in the BF iron-making process. This process converts iron ore pellets, sinter, or natural lump ore into liquid pig iron, which is subsequently converted by integrated steel mills with small amounts of scrap to produce virgin steel in the BOF process. BOF usage represented approximately 90% of the production in China in 2016. To produce one net ton of steel, BOF steel mills require approximately 1.7 net tons of iron ore, depending on the grade, as well as coking coal, limestone, and a small quantity of scrap steel.

Global crude steel production has grown at a 3.9% CAGR since 1996. This growth has been led by China, which produced an estimated 835 million tonnes in 2017 or 49% of global steel production. As a result of policy decisions and strong economic growth, Chinese demand has a significant influence on the global market for steel and iron ore.

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  Iron Ore Demand >>
Iron ore products come in many varieties (pellet, lump, concentrate, sinter feed, etc.), quality ranges (judged based on presence of deleterious elements like phosphorus, alumina, silica), grades (iron percentage)... More >>

  Iron Ore Supply >>
AME estimates global 2017 iron ore supply at approximately 2.1 billion dmt, a 3% growth from 2016. The growth is attributed to new projects as well as growth from smaller producers in major producing regions... More >>

  Iron Ore Pricing >>
Iron ore was historically priced through annual negotiations between the world's largest steelmakers and their suppliers. However, in recent years, the Platts 62% Fe Fines CFR North China... More >>

  Iron Ore Types >>
Iron ore comes in many chemical formulations (minerals), with the three most common forms being hematite, magnetite and goethite. While iron ore deposits were traditionally predominantly hematite... More >>

  Iron Ore Quality >>
Iron ore comes in many chemical formulations (minerals), with the three most common forms being hematite, magnetite and goethite. While iron ore deposits were traditionally predominantly hematite... More >>

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