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China is the world's largest importer and consumer of iron ore in the world. Iron ore is used to make steel. Hence China is also the largest producer of steel. As emerging market economies like China, India, Brazil and others invest heavily in their infrastructure the demand for steel would increase.

From a Bloomberg report yesterday:

"The cash price for iron ore delivered to China, the world’s biggest buyer, rose to the highest this year after India raised taxes on its exports.

The price of 62 percent iron-content ore delivered to Tianjin port increased 2.9 percent to $112.10 a metric ton yesterday, according to e-mailed prices from The Steel Index. The price has more than doubled from its 2009 low on March 27."

The ETFX Russell Global Steel Large Cap Fund from ETFSecurities tracks the performance of the Russell Global Steel Large Cap Index. This index includes 59 companies from 21 countries.

The Top 10 Holdings in the ETFX Russell Global Steel Large Cap Fund are:

1. POSCO (PKX)
South Korea

2. ArcelorMittal (MT)
Luxemourg

3. Nucor Steel (NUE)
USA

4. Nippon Steel Ltd (OTC:NISTY)
Japan

5. JFE Holdings Ltd
Japan

6. Companhia Siderurgica Nacional SA (SID)
Brazil

7. China Steel Corp
China

8.Gerdau (GGB)
Brazil

9.Sumitomo Metal Industries Ltd
Japan

10. US Steel Corp. (X)
USA

Source: 10 Global Large Cap Steel Stocks