What is iron & steel index?

Iron & steel index is a comprehensive measure of the performance of the global iron and steel industry, which includes companies engaged in the production of iron and steel products, as well as companies that mine iron ore and coal, the primary raw materials used in the production of iron and steel. The index is calculated by taking the weighted average of the stock prices of the major companies in the industry. Iron & steel index is closely watched by investors and analysts for its ability to provide a broad insight into the global economic cycle, as well as changes in global commodity markets. The index is also used to assess the performance of various sectors related to iron and steel, such as construction, automotive production and other manufactured goods that rely on steel. The major iron & steel indices include Standard & Poor's Steel Index and Bloomberg Intelligence Index.