WHAT IS IRON ORE?
Iron ore is a main component of steel. 98% of all iron ore mined is used to make steel. Additionally, it takes 1.6 tons of iron ore to produce 1 ton of steel. Because of these facts, some have argued, other than oil, iron ore is more integral to the global economy than any other commodity.
HOW IT AFFECTS THE MARKET?
Although found throughout the world, 72% of the world’s mined iron comes from Brazil and Australia, led by Vale in Brazil and BHP Billiton and Rio Tinto in Australia. International iron ore mining greatly impacts global production of steel. With today’s iron ore pricing structure – with most contracts being settled monthly – pricing of iron can vary more frequently than it used to. As iron ore prices increase, it becomes more costly for integrated mills to make steel.
WHAT SHOULD YOU DO?
Watch what is happening with and around mines in Brazil and Australia; specifically Vale, BHP Billiton, and Rio Tinto. Majestic’s CORE Report
follows iron ore production and the mines that produce it; along with other indicators every week to see where the market stands.