World Steel

The iron ore industry's only noteworthy customer is the world crude steel industry. World crude steel production has increased by 66% since 2001. This large increase in production has been a direct result of the steel required for the industrialization of Asia, more specifically India and China. China and India have increased crude steel production by 315% and 145% from 2001 to 2010, respectively. Below is graph depicting crude steel production since 2001.

The World Steel Association expects world steel demand to rise by over 5% in 2011, to 1,359 million t followed by a further 6% increase in 2012, reaching a new record of 1,441 million t. In the United States, once the world's largest producer of steel, production is recovering against a backdrop of increasing demand worldwide for iron ore and scrap. According to the America Iron and Steel Institute, U.S. steel production is expected to grow by 14% in 2011. As a result, many North American steel producers are looking to secure long term supplies of iron at predictable prices. This has played an important role in recent acquisitions of firms such as Tata Steel Limited, Arcelor Mittal, S.A., Essar Steel Ltd. and Cliffs Natural Resources Inc.