Iron ore

**Iron Ore**

**Introduction to Iron Ore**

Iron ore is one of the most important raw materials in the steel production chain and is known as a key element in the metal and construction industries. This mineral is extracted from mines, and after processing, it is transported to steel production units in various forms such as fines, concentrate, and pellets.

**Types of Iron Ore**

Iron ore is divided into different types based on structure and chemical purity. The most important ones are:

– **Hematite (Fe₂O₃):** One of the most common and widely used types of iron ore with a good iron content.
– **Magnetite (Fe₃O₄):** Magnetic in nature and typically higher in purity.
– **Limonite and Siderite:** Lower-grade types used in certain specific applications.

**Application of Iron Ore in Steel Production**

More than 98% of the world’s iron ore production is consumed by the steel industry. After being converted into pellets or concentrate, the material is turned into sponge iron — and then into steel ingots — through a blast furnace or direct reduction process.

**Factors Affecting Iron Ore Prices**

The global price of iron ore is influenced by several factors, including:

– Global indexes such as Metal Bulletin and Platts
– Demand levels from China as the largest consumer of iron ore
– Sea freight costs and freight rates
– Export policies of producing countries