Iron is a soft, malleable, and ductile metallic element. Next to aluminum, iron is the most abundant of all metals. Pure iron melts at about 1535 degrees Celsius and boils at 2750 degrees Celsius. Archaeologists in Egypt discovered the earliest iron implements dating to about 3000 BC, and iron ornaments were used even earlier.

Steel is an alloy of iron and carbon, often with an admixture of other elements. The physical properties of various types of steel and steel alloys depend primarily on the amount of carbon present and how it is distributed in the iron. Steel is marketed in a variety of sizes and shapes, such as rods, pipes, railroad rails, tees, channels, and I-beams. Steel mills roll and form heated ingots into the required shapes. The working of steel improves the quality of the steel by refining its crystalline structure and making the metal tougher. There are five classifications of steel: carbon steels, alloy steels, high-strength low-ally steels, stainless steel, and tool steels.

Prices – Steel prices in 2003 recovered sharply, mainly due to import tariffs imposed by President Bush, which allowed US producers to push prices higher. The average wholesale price of No. 1 heavy melting steel scrap rose to .03 per metric ton from the depressed levels of .78 seen in 2002 and .17 seen in 2001.

Supply – World production of iron ore in 2001 fell slightly to 1.060 billion metric tons from 1.080 billion in 2000. The world’s largest producers of iron ore in 2001 were China with 20.8% of world production, followed closely by Brazil (19.8%), and Australia (17.1%). The US accounted for only 4.4% of world iron ore production in 2001. World production of raw steel (ingots and castings) in 2002 fell –0.1% to 846.972 million metric tons, with the largest producers being China (with 17.6% of world production), Japan (12.1%), and the US (10.6%).

US production of steel in 2003 was on track to match or fall slightly below the 2002 production level of 100.976 million short tons, which was up from the 10-year low of 98.889 million short tons in 2001. US production of pig iron (excluding ferro-alloys) in 2003 was on track to fall -3.7% to 42.712 million short tons.

Demand – US consumption of ferrous scrap and pig iron fell –5.0% in 2002 to 113.000 million metric tons from 119.000 million metric tons in 2001. The largest consumers of ferrous scrap and pig iron in 2002 were the manufacturers of pig iron and steel ingots and castings with 87% of consumption at 98.000 million metric tons. Iron foundries and miscellaneous users accounted for 11% of consumption and manufacturers of steel castings (scrap) accounted for 2% of consumption.

Trade – The US imported 10.70 million metric tons of iron ore in 2001, down sharply from 15.700 million metric tons in 2000. The bulk of 2001 imports came from Canada (4.530 million metric tons) and Brazil (4.260 million metric tons).