Iron Ore

1. Definition

Iron Ore is the primary raw material used to make Steel. It is the backbone of modern infrastructure, used in everything from skyscrapers to automobiles.

2. Key Characteristics

• The China Factor: China dominates the global seaborne iron ore trade (buying over 70%). Thus, prices are heavily correlated with China's property and infrastructure sectors.
• Major Producers: Supply is concentrated in Australia (Rio Tinto, BHP) and Brazil (Vale).

3. Trading Hubs

Unlike other base metals traded heavily on the LME, Iron Ore derivatives are most active on the Singapore Exchange (SGX) and China's Dalian Commodity Exchange (DCE) due to Asian demand dominance.