Swords and weapons in the Middle-earth appear to be largely steel. Plate armour also appears to be steel but with some iron mixed in among the poorer races.
The Nazgul have steel-bladed swords
In their white faces burned keen and merciless eyes; under their
mantles were long grey robes; upon their grey hairs were helms of
silver; in their haggard hands were swords of steel.
The Lord of the Rings: Fellowship of the Rings
The armour (and possibly weapons) of the forces of Minas Tirath appear to be steel
Then turning south again he beheld Minas Tirith. Far away it seemed.
and beautiful: white-walled, many-towered, proud and fair upon its
mountain-seat; its battlements glittered with steel, and its turrets
were bright with many banners.
The Lord of the Rings: Fellowship of the Rings
as is orc armour
He turned left and sped across the smooth floor of the hall. The
distance was greater than it had looked. As they ran they heard the
beat and echo of many hurrying feet behind. A shrill yell went up:
they had been seen. There was a ring and clash of steel. An arrow
whistled over Frodo's head.
The Lord of the Rings: Fellowship of the Rings
The Southrons had poor armour of iron. Both Gondorese and Southrons appear to have steel swords.
He could hear plainly the ringing grate of steel on steel, the clang
of sword on iron cap, the dull beat of blade on shield; men were
yelling and screaming, and one clear loud voice was calling _Gondor_!
_Gondor_! `It sounds like a hundred blacksmiths all smithying together,' said Sam to Frodo. 'They're as near as I want them now.'
Lord of the Rings: The Two Towers
Sam and Merry's swords are steel
'Now!' said Sam. 'At last I can deal with you!' He leaped forward with
drawn blade ready for battle. But Gollum did not spring. He fell flat
upon the ground and whimpered. 'Don't kill us,' he wept. 'Don't hurt
us with nassty cruel steel!
Lord of the Rings: The Return of the King
and
Then he stopped, for he had caught the gleam of swords. 'Bill Ferny,'
said Merry, 'if you don't open that gate in ten seconds, you'll regret
it. I shall set steel to you, if you don't obey.
Lord of the Rings: The Return of the King