Iron ore

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Iron ores [1] are rocks and minerals from which metallic iron can be economically extracted. The
ores are usually rich in iron oxides and vary in color from dark grey, bright yellow, deep purple, to
rusty red. The iron itself is usually found in the form of magnetite (Fe3O4, 72.4% Fe), hematite
(Fe2O3, 69.9% Fe), goethite (FeO(OH), 62.9% Fe), limonite (FeO(OH).n(H2O)) or siderite (FeCO3,
48.2% Fe).

Ores carrying very high quantities of hematite or magnetite (greater than ~60% iron) are known as
"natural ore" or "direct shipping ore", meaning they can be fed directly into iron-making blast
furnaces. Iron ore is the raw material used to make pig iron, which is one of the main raw materials
to make steel. 98% of the mined iron ore is used to make steel.[2] Indeed, it has been argued that iron
ore is "more integral to the global economy than any other commodity, except perhaps oil".[3]

Hematite: the main iron ore in Brazilian mines

This stockpile of iron ore pellets will be used in steel production.

Steel industry in China

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 This article related to the history of China is a stub. You can help Wikipedia by
expanding it.

The Steel industry in China has developed over several decades into the world biggest.[1] China
accounted for over 50% of world steel production in 2013.[1] It has driven by rapid modernisation
of its economy, construction, infrastructure and manufacturing industries.[1]

Contents
 1 History
 2 See also
 3 References
 4 External links

History
Main article: Chinese Steel industry pre-1949

The steel industry was small and sparsely populated at the start of the twentieth century and during
both world wars. Most of the steel infrastructure was destroyed during the wars, and were using
Soviet technologies. China lagged the western countries in its steel industry development even
though they were using central planning techniques during the early days of communist rule.[2]

China underwent rapid economic industrialisation since Deng Xiaoping's capitalist reforms which
took place 3 decades ago in 1978.[3]

The steel industry gradually increased it output. China's annual crude steel output was 100 million
tons in 1996.[4]

It produced 123 million tons of steel in 1999. After its ascension to the WTO it aggressively
expanded its production for its growing appetite of manufacturing industries such as automotive
vehicles, consumer electronics and building materials.[3]

The Chinese steel industry is dominated by a number of large state-owned groups which are owned
via shareholdings by local authorities, provincial governments and even the central authorities. The
biggest steel groups are Baosteel, Angang Steel Company, Wuhan Iron and Steel, Anshan,
Tangshan, Shagang Group and Hebei Iron and Steel.[5]

In 2008 raw materials such as Iron ore prices grew and China had to reluctantly agree to price
increases by the three largest iron ore producers in the world; BHP Billiton, Rio Tinto and Vale.[3]

During the Global financial crisis the Chinese steel mills won price reprieves as demand from their
customers slowed. When the demand started to pick up again in 2009 and in 2010, the price crept
back up due to higher demand for automobiles, low interest rates, government fiscal stimuli around
the world.[6] Prices for iron ore were negotiated on an annual contract pricing scheme.[7] [8][9][10]
Australian iron ore producers were not happy that iron prices did not reflect Spot market pricing. In
2010 pressure from BHP Billiton and Rio Tinto to move to a quarterly based index pricing
succeeded.[11] Many Japanese steel mills and Chinese steel companies had to follow as demand for
raw materials heated up.[11][12][13]

Spot-basis pricing has caused problems for steel manufacturers such as exposing them to price
fluctuation in the market and reducing the stability of resource supply. Steel mills prefer long term
pricing to hedge against cost and maintain raw material supply stability.[14]

Rio Tinto has said it will cancel contracts and sell the steel on the spot markets if Chinese steel mills
back down on the new quarterly pricing regime.[14]

See also[edit]
 China Iron and Steel Association
 List of steel producers
 Gold mining in China
 List of countries by steel production
 Global steel industry trends
 History of the modern steel industry
 Steel mill

References[edit]
1. ^ Jump up to: a b c http://www.chinaknowledge.com/Business/CBGdetails.aspx?subchap=3&content=14
2. Jump up ^ The Library of Congress, A Country Study: China, This article incorporates public domain
material from websites or documents of the Library of Congress Country Studies.
http://lcweb2.loc.gov/frd/cs/cntoc.html
3. ^ Jump up to: a b c chinabusinessreview.net
4. Jump up ^ William Thomas Hogan, 2000 The Steel Industry of China, Lexington Books, ISBN 0-7391-
0081-5, 978-0-7391-0081-3, 80 pages
5. Jump up ^ http://www.steelonthenet.com/production.html
6. Jump up ^ Robert Guy Matthews. Steelmakers Crank Up Output --- Surging Production in China, Eastern
Europe Puts Downward Pressure on Prices as Inventories Rise. Wall Street Journal. Eastern edition. 1 June
2010 B.1. In: ABI/INFORM Global [database on the Internet] [cited 28 June 2010]. Available from:
http://www.proquest.com/; Document ID: 2048312551.
7. Jump up ^ http://www.theage.com.au/business/china-iron-ore-price-talks-in-chaos-20100119-mj4f.html
8. Jump up ^ http://www.theage.com.au/business/bhp-in-significant-win-on-ironore-contracts-20100330-
r978.html
9. Jump up ^ http://www.heraldsun.com.au/business/iron-ore-price-fight/story-e6frfh4f-1111115937159
10. Jump up ^ http://www.abc.net.au/lateline/business/items/201003/s2860719.htm
11. ^ Jump up to: a b http://www.news.com.au/business/bhp-strikes-short-term-iron-ore-contracts/story-e6frfm1i-
1225847327811
12. Jump up ^ http://news.smh.com.au/breaking-news-world/mining-titan-bhp-in-landmark-iron-ore-pricing-
move-20100330-rahy.html
13. Jump up ^ http://www.theaustralian.com.au/business/bhp-treads-softly-on-iron-ore-price-revolution/story-
e6frg8zx-1225849061331
14. ^ Jump up to: a b Matt Chambers. Rio threat to China steel mills. The Australian. 16 June 2010 32. In:
ProQuest ANZ Newsstand [database on the Internet] [cited 28 June 2010]. Available from:
http://www.proquest.com/; Document ID: 2058385621.