Ferric oxide, commonly known as iron(III) oxide or rust, is a chemical compound with the formula Fe₂O₃. It appears as a reddish-brown powder and is primarily formed when iron reacts with oxygen in the presence of moisture. Ferric oxide is widely used in various applications, including pigments, ceramics, and as a catalyst in chemical reactions. In nature, ferric oxide is found in several minerals, such as hematite and magnetite. It plays a significant role in the production of iron and steel, as it can be reduced to obtain metallic iron. Additionally, ferric oxide is utilized in the manufacturing of magnetic materials and as a polishing agent.