At a Glance:
1. Iron (about 98% of the iron mined each year to manufacture steel) is vital to the global economy as it's a key ingredient in making steel.
2. In 2018, about 51% of the steel produced went into buildings and bridges, with another 12% used to make automobiles.
3. Overall, iron typically ranks as the third biggest commodities market by dollar value behind oil and gold.
1) Oil
2) Gold
3) Iron
4. The steel industry uses pig iron to manufacture steel.
5. Steel is vital for building the infrastructure needed to support economic growth. Both governments and the private sector use it to construct transportation networks such as:
1) bridges
2) tunnels
3) railways
4) transport-related facilities like gas stations, train terminals, ports, and airports
6. Steel is also vital to the energy industry. Oil and gas companies, for example, use lots of it to drill new wells and for pipelines to move hydrocarbons from production regions to end-users.
7. The renewable energy industry also uses lots of steel.
8. Iron ore is a commodity, its price tends to be highly sensitive to changes in supply and demand. If the global economy slows down or mining companies produce more iron than the steel sector needs, the price of iron ore can plummet. The decline in price will have a direct impact on the profitability of iron ore producers and their stock prices.
No comments:
Post a Comment