Cliffs Natural Resources is a leading mining and natural resources company in the U.S., and is also the largest producer of ironorepellets in North America.
As the ironorepellets produced by the division are used exclusively by steel manufacturers, the demand for steel directly impacts the demand for ironore and hence the price commanded.
The North American ironore division produces ironorepellets for use in blast furnaces as part of the steelmaking process, and currently has a rated annual production capacity of 27 million tons of ironore.
Upstream producers such as Brazil's Companhia Vale do Rio Doce (CVRD), the world's largest producer of ironore and pellets, are trying to get into the business of making quality steel.