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What we use iron for

Where does it go, and why this element?

About 98% of iron ore becomes steel. Buildings and infrastructure take about half of all steel, then machinery, cars and metal goods. Iron is used because steel is strong and easy to shape, and iron is the least expensive metal.

Last updated 5 October 2026.

Where it goes

Where it goes (World)
Buildings and infrastructure 52%
Mechanical equipment 16%
Automotive 12%
Metal products 10%
Other transport 5%
Electrical equipment 3%
Domestic appliances 2%
2025. Shares of steel use, not of iron. About 98% of iron ore becomes steel. worldsteel gives these shares with 2025 steel use in World Steel in Figures 2026. Its web page gave the same shares in 2024, so worldsteel may not re-estimate the split every year1
Where it went over time, in million tonnes (United States)
  • Other
  • Containers
  • Machinery
  • Automotive
  • Service centers and distributors
  • Construction
0 25 50 75 100 2005 2010 2015 Construction Service centers and distributors Automotive Other
Net shipments of steel mill products by US companies, by market, from American Iron and Steel Institute data in the USGS Minerals Yearbook, Iron and Steel. Thousand metric tons divided by 1,000. Other is the source's 'All others'. Service centers and distributors pass steel on to other users. The source does not say which markets that steel goes to, so the other bands do not include it. Other is every remaining market in the source, for example oil and gas, appliances and agriculture. These are shipments by US steel companies, not world iron use. They leave out imported steel, which was 19% of US supply in 2019 (USGS)234567891011121314
Show the numbers
Year ConstructionService centers and distributorsAutomotiveMachineryContainersOther Total
2005 21.7 Mt27.7 Mt13.1 Mt1.5 Mt2.74 Mt28.4 Mt 95.1 Mt
2006 19 Mt27.3 Mt14.1 Mt1.38 Mt2.82 Mt34.7 Mt 99.3 Mt
2007 21.6 Mt24 Mt12.4 Mt1.27 Mt2.64 Mt34.7 Mt 96.6 Mt
2008 18.5 Mt23.1 Mt11.7 Mt1.04 Mt2.56 Mt32.5 Mt 89.4 Mt
2009 13.5 Mt13.8 Mt7.3 Mt0.542 Mt2.04 Mt19.3 Mt 56.5 Mt
2010 16.3 Mt20.4 Mt9.62 Mt0.795 Mt2.39 Mt26.2 Mt 75.7 Mt
2011 16.3 Mt25 Mt11.3 Mt0.978 Mt1.9 Mt27.9 Mt 83.4 Mt
2012 17.6 Mt23.6 Mt13.4 Mt0.989 Mt1.9 Mt29.6 Mt 87.1 Mt
2013 18.9 Mt23.3 Mt13.1 Mt0.852 Mt1.97 Mt28.5 Mt 86.6 Mt
2014 20.9 Mt23.1 Mt13 Mt1 Mt1.93 Mt29.2 Mt 89.1 Mt
2015 18.4 Mt23.6 Mt12.8 Mt0.911 Mt1.57 Mt21.3 Mt 78.6 Mt
2016 20.2 Mt21.9 Mt13.7 Mt1.01 Mt1.41 Mt20.4 Mt 78.6 Mt
2017 21.2 Mt21.9 Mt13 Mt1.29 Mt1.38 Mt23.6 Mt 82.4 Mt
2018 24.6 Mt21.6 Mt15.1 Mt1.55 Mt1.6 Mt22 Mt 86.5 Mt
2019 27.3 Mt20 Mt14.9 Mt1.34 Mt1.54 Mt22.2 Mt 87.3 Mt

About 98% of the world’s iron ore is used to make iron for steel15. The end uses of iron are therefore the end uses of steel.

The world used 1,718 million tonnes of steel in 2025. Buildings and infrastructure took 52%, mechanical equipment 16%, cars 12% and metal products 10%, according to worldsteel, the steel industry’s association1.

In construction, steel goes into buildings, bridges, reinforcing in concrete, roofing and fencing. In machinery, it goes into engines, pumps and cranes. In transport, it goes into railway carriages, ships and car frames15.

In the United States in 2025, construction took about 31% of steel shipments, service centers and distributors 26% and cars 15%16.

US steel shipments to construction grew from 21.7 million tonnes in 2005 to 27.3 million tonnes in 2019214. USGS calls construction the largest single end-use market for steel10. In 2018, shipments to construction also became larger than shipments to service centers and distributors13. Total US shipments fell from 89.4 million tonnes in 2008 to 56.4 million tonnes in 20095. In 2015, shipments for oil, gas and petrochemicals fell by half from 201410.

The world used about 209 kg of steel per person in 20251. Use per person was 844 kg in South Korea, 347 kg in Germany and 261 kg in Russia1.

Small amounts of iron are used outside steel. Cast iron is used for pipes, fittings and engine blocks15. Iron chloride is used to treat water and to etch printed circuits15.

Why this element

Pure iron is soft. Adding a small amount of carbon, usually less than 1%, turns it into steel. Steel is much harder and has many uses15. Other elements change it further. Chromium and nickel make stainless steel, which does not rust. Vanadium, tungsten or molybdenum make tool steels for cutting tools and drill bits15.

Cost is the other reason. USGS calls iron the least expensive and most widely used metal16. Ore with 62% iron cost about US$100 per dry tonne in 2025, delivered to China. That is about 16 US cents per kilogram of iron (100.2 ÷ 620 kg)17. Steel accounts for about 90% of all metal used each year15.

Iron and some of its alloys are magnetic15. Electrical steel, an alloy of iron and silicon, is used in transformers and electric motors18. The US Department of Energy lists electrical steel, made for these uses, as a critical material19.

What could replace it

For most uses, nothing replaces iron at the same price. USGS says iron and steel compete with cheaper non-metal materials or with dearer materials that perform better16.

  • In cars, aluminum and plastics compete because they are lighter16.
  • In construction, aluminum, concrete and wood compete with steel16. Concrete buildings also contain steel as reinforcing15.
  • In containers, aluminum, glass, paper and plastics compete with steel16.

For the iron itself, the only primary source is iron ore. Scrap and direct reduced iron (DRI) replace each other as feeds for electric arc furnaces. The United States used about 7.8 million tonnes of DRI in 2025 in place of scrap20.

Where demand is going

In October 2025, worldsteel expected world demand for finished steel to be unchanged in 2025. Falling use in China was balanced by growth in Egypt, India, Saudi Arabia and Vietnam16. Apparent steel use fell from 1,841 million tonnes in 2021 to 1,718 million in 20251.

Australia’s Department of Industry, Science and Resources made a forecast in its June 2026 Resources and Energy Quarterly. It expected world steel production to reach about 2 billion tonnes by 2031. Output would fall in China and grow in India, Southeast Asia and the Middle East21. Over a longer time, the IEA projected in 2020 that world steel demand would rise by more than a third to 205022.

In June 2025 ArcelorMittal said it would not build its planned hydrogen direct reduction plants in Bremen and Eisenhüttenstadt, Germany. It turned down €1.3 billion of German government support. The company said the business case was too weak and that renewable hydrogen was not commercially viable23. In April 2026 Stegra agreed in principle on €1.4 billion of new financing to complete its green steel plant in Boden, Sweden. It said the timeline was under review24.

Sources

  1. 1

    World Steel Association (worldsteel), the steel industry's association, 2026. World Steel in Figures 2026 , Sustainability indicators; Top 50 companies; Major steel-producing countries; Production by process; Pig iron; DRI; Iron ore 2024; Steel use by sector (p. 30).

    Crude steel, pig iron and DRI output by country, top companies, iron ore trade, emissions and energy per tonne of steel.

    • Steel use by sector ... Building and infrastructure 52% ... STEEL USE 2025 1 718.2 Mt
    • Steel use by sector … Building and infrastructure … STEEL USE 2025 1 718.2 Mt
    • Globally, 209 kg of steel … per person in … 2025
    • South Korea … 843.7 … Germany … 347.1 … Russia … 261.0
    • Apparent steel use … 1 841.2 … 1 718.2
  2. 2

    U.S. Geological Survey (Michael D. Fenton), 2006. Iron and Steel, in Minerals Yearbook 2006, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2005 and 2006, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 27,700 ... Construction ... 21,700 ... Automotive ... 13,100 ... Machinery ... 1,500 ... Containers ... 2,740 ... All others ... 28,400
    • Shipments by markets ... Service centers and distributors ... 27,300 ... Construction ... 19,000 ... Automotive ... 14,100 ... Machinery ... 1,380 ... Containers ... 2,820 ... All others ... 34,700
    • Construction … 21,700
  3. 3

    U.S. Geological Survey (Michael D. Fenton), 2007. Iron and Steel, in Minerals Yearbook 2007, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2006 and 2007, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 24,000 ... Construction ... 21,600 ... Automotive ... 12,400 ... Machinery ... 1,270 ... Containers ... 2,640 ... All others ... 34,700
  4. 4

    U.S. Geological Survey (Michael D. Fenton), 2008. Iron and Steel, in Minerals Yearbook 2008, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2007 and 2008, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 23,100 ... Construction ... 18,500 ... Automotive ... 11,700 ... Machinery ... 1,040 ... Containers ... 2,560 ... All others ... 32,500
  5. 5

    U.S. Geological Survey (Michael D. Fenton), 2010. Iron and Steel, in Minerals Yearbook 2010, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2009 and 2010, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 13,800 ... Construction ... 13,500 ... Automotive ... 7,300 ... Machinery ... 542 ... Containers ... 2,040 ... All others ... 19,300
    • Shipments by markets ... Service centers and distributors ... 20,400 ... Construction ... 16,300 ... Automotive ... 9,620 ... Machinery ... 795 ... Containers ... 2,390 ... All others ... 26,200
    • Net shipments … 89,400 … 56,400
  6. 6

    U.S. Geological Survey (Michael D. Fenton), 2011. Iron and Steel, in Minerals Yearbook 2011, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2010 and 2011, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 25,000 ... Construction ... 16,300 ... Automotive ... 11,300 ... Machinery ... 978 ... Containers ... 1,900 ... All others ... 27,900
  7. 7

    U.S. Geological Survey (Michael D. Fenton), 2012. Iron and Steel, in Minerals Yearbook 2012, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2011 and 2012, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 23,600 ... Construction ... 17,600 ... Automotive ... 13,400 ... Machinery ... 989 ... Containers ... 1,900 ... All others ... 29,600
  8. 8

    U.S. Geological Survey (Michael D. Fenton), 2013. Iron and Steel, in Minerals Yearbook 2013, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2012 and 2013, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 23,300 ... Construction ... 18,900 ... Automotive ... 13,100 ... Machinery ... 852 ... Containers ... 1,970 ... All others ... 28,500
  9. 9

    U.S. Geological Survey (Michael D. Fenton), 2014. Iron and Steel, in Minerals Yearbook 2014, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2013 and 2014, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 23,100 ... Construction ... 20,900 ... Automotive ... 13,000 ... Machinery ... 1,000 ... Containers ... 1,930 ... All others ... 29,200
  10. 10

    U.S. Geological Survey (Michael D. Fenton), 2015. Iron and Steel, in Minerals Yearbook 2015, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2014 and 2015, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 23,600 ... Construction ... 18,400 ... Automotive ... 12,800 ... Machinery ... 911 ... Containers ... 1,570 ... All others ... 21,300
    • single end-use market for steel, decreased by 12.1% in 2015
    • oil, gas, and petrochemical shipments decreased by 50.0%
  11. 11

    U.S. Geological Survey (Michael D. Fenton and Christopher A. Tuck), 2016. Iron and Steel, in Minerals Yearbook 2016, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2015 and 2016, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 21,900 ... Construction ... 20,200 ... Automotive ... 13,700 ... Machinery ... 1,010 ... Containers ... 1,410 ... All others ... 20,400
  12. 12

    U.S. Geological Survey (Candice C. Tuck), 2017. Iron and Steel, in Minerals Yearbook 2017, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2016 and 2017, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 21,900 ... Construction ... 21,200 ... Automotive ... 13,000 ... Machinery ... 1,290 ... Containers ... 1,380 ... All others ... 23,600
  13. 13

    U.S. Geological Survey (Candice C. Tuck), 2018. Iron and Steel, in Minerals Yearbook 2018, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2017 and 2018, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 21,600 ... Construction ... 24,600 ... Automotive ... 15,100 ... Machinery ... 1,550 ... Containers ... 1,600 ... All others ... 22,000
    • Service centers and distributors … 21,600 … Construction … 24,600
  14. 14

    U.S. Geological Survey (Candice C. Tuck), 2019. Iron and Steel, in Minerals Yearbook 2019, volume I , Table 3, Distribution of shipments of steel mill products, by steel type, product, and market: Shipments by markets.

    US net shipments of steel mill products by market, 2018 and 2019, from American Iron and Steel Institute data.

    • Shipments by markets ... Service centers and distributors ... 20,000 ... Construction ... 27,300 ... Automotive ... 14,900 ... Machinery ... 1,340 ... Containers ... 1,540 ... All others ... 22,200
    • Construction … 27,300 … 31.24
  15. 15

    Geoscience Australia, 2023. Iron (Australian mineral facts) , Properties; Formation; Resources; Mining; Processing.

    Ore minerals and their iron content, banded iron formations, Hamersley Province deposit types and grades, processing.

    • About 98% of world iron ore production is used to make iron in the form of steel
    • Steel buildings, bridges (such as the Sydney Harbour Bridge), reinforcing in concrete buildings, roofing, cladding, doors, fencing. … Steel engines, pumps, cranes … Steel railway carriages/engines, ships, car frames
    • Iron in cast form has many specific uses (e.g. pipes, fittings, engine blocks)
    • Iron chloride is used in water treatment and purification. … Iron chloride is used to etch copper in the making of electrical printed circuits
    • pure iron is quite soft. Adding a small amount of carbon (usually less than 1%) makes iron into steel which is significantly harder and extremely versatile
    • Stainless steel … nickel … chromium … doesn’t rust … Tool steel … vanadium, … tungsten … and/or molybdenum … very hard … metal cutting tools … drill bits
    • accounting for about 90% of all metal used each year
    • Iron and some alloys of iron are also magnetic
    • reinforcing in concrete buildings
  16. 16

    U.S. Geological Survey (C.C. Tuck), 2026. Iron and Steel, in Mineral Commodity Summaries 2026 , p. 2, World Production table; Events, Trends, and Issues; Substitutes.

    World pig iron and raw steel output, US tariffs, substitutes.

    • Construction accounted for an estimated 31% of net shipments by market classification, followed by steel service centers and distributors, 26%; automotive, 15%
    • Iron is the least expensive and most widely used metal
    • iron and steel compete either with less expensive nonmetallic materials or with more expensive materials that have a performance advantage
    • Iron and steel compete with lighter materials, such as aluminum and plastics in the automotive industry
    • aluminum, concrete, and wood in construction
    • aluminum, glass, paper, and plastics in containers
    • The World Steel Association7 estimated global finished steel demand to remain unchanged in 2025 owing to declining steel demand in China offset by growth in developing economies including Egypt, India, Saudi Arabia, and Vietnam
  17. 17

    World Bank, 2026. Commodity Price Data (The Pink Sheet), annual and monthly prices , Annual Prices (Nominal) and Annual Prices (Real), 'Iron ore, cfr spot'; Description and Definitions sheets; file updated 2 September 2026.

    Iron ore price, annual averages 1960 to 2025, nominal and in real 2010 US dollars (deflated by the MUV index). Contract price for Brazilian ore in US cents per dry metric tonne unit to 2005, spot price in US dollars per dry tonne after.

    • Iron ore, cfr spot … 2025 … 100.2
  18. 18

    U.S. Department of Energy, 2023. Critical Materials Assessment 2023 , Section 1.2.10, Electrical Steel.

    Electrical steel (iron-silicon alloys) is used in transformers, generators, motors and inverters.

    • Electrical steel, also known as iron-silicon alloys, is widely used in transformers, generators, motors, and inverters
  19. 19

    U.S. Department of Energy, 2023. What Are Critical Materials and Critical Minerals? .

    The 2023 DOE critical materials list, including electrical steel.

    • NON-ELEMENTAL CRITICAL MATERIALS (DOE) … Electrical Steel
  20. 20

    U.S. Geological Survey (C.C. Tuck), 2026. Iron and Steel Scrap, in Mineral Commodity Summaries 2026 , p. 1, Recycling.

    US scrap recycling rates by end use and the raw materials saved by recycling.

    • An estimated 7.8 million tons of direct-reduced iron was consumed in the United States in 2025 as a substitute for iron and steel scrap
  21. 21

    Australian Government, Department of Industry, Science and Resources (Office of the Chief Economist), 2026. Resources and Energy Quarterly: June 2026 , Chapter 3 Iron ore: sections 3.1, 3.2, 3.3; Table 3.3 Iron ore outlook.

    Second price source (US$87/t FOB in 2025), 2026 price forecast, Australian iron ore export earnings, shipments to China, the CMRG restriction on BHP, and the steel output forecast to 2031.

    • World steel production is expected to reach around 2 billion tonnes by 2031, with falling output in China offset by higher production in India, Southeast Asia, and the Middle East
  22. 22

    International Energy Agency, 2020. Iron and Steel Technology Roadmap: Towards more sustainable steelmaking , Executive summary.

    Sector CO2 emissions (2.6 Gt, 7% of the energy system), coal use, scrap share and energy, demand projection to 2050.

    • Global demand for steel is projected to increase by more than a third through to 2050
  23. 23

    Argus Media, 2025. ArcelorMittal halts DRI-EAF projects in the EU .

    ArcelorMittal's decision of June 2025 not to build hydrogen-ready DRI plants in Bremen and Eisenhüttenstadt, and its stated reasons.

    • The projects were slated to receive €1.3bn ($1.5bn) in subsidies from the German federal government … Even with that support, the business case remains too weak … the lack of commercially viable renewable hydrogen
  24. 24

    Stegra (press release), 2026. Stegra has agreed in principle on a €1.4 billion financing round led by a Wallenberg Investments consortium .

    New financing for the Boden steel plant in Sweden, April 2026; the project timeline is under review.

    • Stegra has agreed in principle on €1.4 billion in new financing … to complete the construction of its large-scale green steel plant in Boden, Sweden … The project timeline is under review