product - IRON ORE

Iron Ore
Iron ore is the source of primary iron for the world's iron and steel industries. It is therefore essential for the production of steel, which in turn is essential to maintaining a strong industrial base. Almost all(98%) of the iron ores are used in steelmaking.

iron ore is mined in about 50 countries. The seven largest of these producing countries account for about three-quarters of total world production. Indeed, it has been argued that iron ore is "more integral to the global economy than any other commodity, except perhaps oil."

Iron Ore Market
With the global economy in a recovery mode since late 2009, the steel industry should continue on its recent improvement trend.
The steel industry has recorded high growth rates in both production and consumption over the past few years, benefitting from soaring steel demand in the automobile and construction sectors before the recession. Moreover, cost effective and highly efficient steel-making technologies have lived the demand for US steel in the Middle Eastern and Asian countries.

The World Steel Association (worldsteel) recently released its October 2011 Short Range Outlook (SRO) for 2011 and 2012. Worldsteel forecasts that apparent steel use will increase by 6.5% to 1,398 mmt in 2011, following growth of 15.1% in 2010. In 2012, it is forecast that world steel demand will grow further by 5.4%.

We expect to see growth performance varying widely across regions. The recovery of steel demand in the developed world will be slow while most of the emerging and developing world should continue to enjoy robust growth in their steel demand."

China, the biggest market of iron ore, it's apparent steel use in 2011 is expected to increase by 7.5% to 643.2 mmt following 8.5% growth in 2010. In 2012, steel demand is expected to maintain 6.0% growth , which will bring China's apparent steel usage to 681.6 mmt.