Monday, October 28, 2013
The Iron Ore Industry – Ironclad Investment Indeed!
Iron is the most omnipresent metal: it is used to build the tallest skyscrapers and the smallest sewing needles; the cars on the road, and the cutlery on your dinner table. It makes up 5% of the earths’ crust, and is the second most abundant metal after aluminum.
Iron production first began in the Middle Bronze Age, and the first blast furnaces had been set up as early as the 1st century AD. As scientific advancements shed more light on its structural properties, and as mass production made it cheaper to produce, iron became the material of choice in the production of many new products, especially in construction activities. For example, the first iron bridge was built in England in 1779, merely 70 years after the first coke-fired blast furnace started producing cast iron.
Nowadays, iron is rarely used in its pure form. Around 98% of the total iron produced globally is used to make steel, which is used primarily in residential and non-residential construction, and the manufacturing of automobiles. Steel is also used in the manufacturing of railroad tracks, wires, magnetic cores, ships, trains and major household and industrial appliances. Stainless steel, which does not readily rust or corrode, is widely used to manufacture cutlery, surgical instruments and watches.
Though iron ore is primarily used to manufacture steel, their prices are surprisingly not co-dependent and fluctuate independently. Read More: BHP, CLF, RIO, VALE