Steel is an alloy made mostly of iron combined with carbon and other alloying elements such as manganese, chromium, vanadium, and molybdenum.

There are two main production methods for steel. Integrated production involves blast furnaces (BF) and basic oxygen furnaces (BOF). This is the primary steel making process and accounts for two-thirds of global production. Most Chinese production is of the BF-BOF variety. The alternative production method involves electric arc furnaces (EAF). The main input for EAF production is steel scrap. Integrated production requires raw materials such as iron ore, coking coal, and limestone. Chinese steel mills' voracious appetite for iron ore and coking coal has helped drive up prices right across the steel supply chain.

Molten steel tapped from the furnaces is cast into slabs or billets which are semi-finished, mid-stream products. Finished steel products belong to one of two families: flat steels or long steels.

Flat steels are produced from slabs run through rollers to reduce their thickness. Flat steels can be further broken down into two categories: strip and plate. Strip consists of hot rolled coil (HRC) and cold rolled coil (CRC). Applications for HRC and CRC steel include car and truck bodies, domestic appliances, tinplate cans, and furniture. Plate products are used for ship building, large pipes, and yellow goods.

Long steels are made from billets and include rods, bars, and sections. Construction is a key end-use sector for long steels. Long steel applications range from reinforcing bars to steel frames for buildings and bridges.