Iron is the backbone of the industrial development of a country. Demand for iron ore is expected to remain high for many years to come, given its many uses in infrastructure, transportation and manufacturing. Iron ore is necessary for an economy to function and to remain productive.
The primary use of iron ore is in the production of steel. Approximately 98% of the mined iron ore is used to make steel. Steel is used to make automobiles, locomotives, ships, beams used in buildings, furniture, paper clips, tools, reinforcing rods for concrete, bicycles, and thousands of other items. These are manufactured with steel because of the high strength and functionality of the metal.
The steel industry is considered the backbone of all industries, which by default gives Iron ore its importance. The Financial Times has argued that iron ore is “more integral to the global economy than any other commodity, except perhaps oil”.