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Iron(III) oxide or ferric oxide is the inorganic compound with the formula Fe2O3. It is one of the three main oxides of iron, the other two being iron(II) oxide (FeO), which is rare, and iron(II,III) oxide (Fe3O4), which also occurs naturally as the mineral magnetite. As the mineral known as hematite, Fe2O3 is the main source of iron for the steel industry. Fe2O3 is ferromagnetic,citation needed dark red, and readily attacked by acids. Iron(III) oxide is often called rust, and is acidic in nature and to some extent this label is useful, because rust shares several properties and has a similar composition.

Uses
Iron industry

The overwhelming application of iron(III) oxide is as the feedstock of the steel and iron industries, e.g. the production of iron, steel, and many alloys.

Polishing
A very fine powder of ferric oxide is known as "jeweler's rouge", "red rouge", or simply rouge. It is used to put the final polish on metallic jewelry and lenses, and historically as a cosmetic. Rouge cuts more slowly than some modern polishes, such as cerium(IV) oxide, but is still used in optics fabrication and by jewelers for the superior finish it can produce. When polishing gold, the rouge slightly stains the gold, which contributes to the appearance of the finished piece. Rouge is sold as a powder, paste, laced on polishing cloths, or solid bar (with a wax or grease binder). Other polishing compounds are also often called "rouge", even when they do not contain iron oxide. Jewelers remove the residual rouge on jewelry by use of ultrasonic cleaning. Products sold as "stropping compound" are often applied to a leather strop to assist in getting a razor edge on knives, straight razors, or any other edged tool.