Steel is an alloy consisting mostly of iron, with a carbon content between 0.2% and 2.04% by weight (C:110–10Fe), depending on grade. Carbon is the most cost-effective alloying material for iron, but various other alloying elements are used such as manganese, chromium, vanadium, and tungsten. Carbon and other elements act as a hardening agent, preventing dislocations in the iron atom crystal lattice from sliding past one another. Varying the amount of alloying elements and form of their presence in the steel (solute elements, precipitated phase) controls qualities such as the hardness, ductility, and tensile strength of the resulting steel. Steel with increased carbon content can be made harder and stronger than iron, but is also more brittle. The maximum solubility of carbon in iron (as austenite) is 2.14% by weight, occurring at 1149 °C; higher concentrations of carbon or lower temperatures will produce cementite. Alloys with higher carbon content than this are known as cast iron because of their lower melting point and castability. Steel is also to be distinguished from wrought iron containing only a very small amount of other elements, but containing 1–3% by weight of slag in the form of particles elongated in one direction, giving the iron a characteristic grain. It is more rust-resistant than steel and welds more easily. It is common today to talk about 'the iron and steel industry' as if it were a single entity, but historically they were separate products.

Though steel had been produced by various inefficient methods long before the Renaissance, its use became more common after more efficient production methods were devised in the 17th century. With the invention of the Bessemer process in the mid-19th century, steel became a relatively inexpensive mass-produced good. Further refinements in the process, such as basic oxygen steelmaking, further lowered the cost of production while increasing the quality of the metal. Today, steel is one of the most common materials in the world and is a major component in buildings, tools, automobiles, and appliances. Modern steel is generally identified by various grades of steel defined by various standards organizations.

Material properties

Iron, like most metals, is not usually found in the Earth's crust in an elemental state. Iron can be found in the crust only in combination with oxygen or sulfur. Typical iron-containing minerals include Fe₂O₃—the form of iron oxide found as the mineral hematite, and FeS₂—pyrite (fool's gold). Iron is extracted from ore by removing the oxygen by combining it with a preferred chemical partner such as carbon. This process, known as smelting, was first applied to metals with lower melting points. Copper melts at just over 1000 °C, while tin melts around 250 °C. Cast iron—iron alloyed with greater than 1.7% carbon—melts at around 1370 °C. All of these temperatures could be reached with ancient methods that have been used for at least 6000 years (since the Bronze Age). Since the oxidation rate itself increases rapidly beyond 800 °C, it is important that smelting take place in a low-oxygen environment. Unlike copper and tin, liquid iron dissolves carbon quite readily, so that smelting results in an alloy containing too much carbon to be called steel.