Morcarite (blood steel) is one of the most valuable resources in Middle-Earth, but it is almost impossible to retrieve, it being down in the mines of the crooked Blackbeard Dwarves.
As stated above, Morcarite is nearly impossible to retrieve because it is only found in the Black Mountains, where the Blackbeard Dwarves live. The Dwarves are very greedy, and don't let anyone but themselves mine this treasured metal. It is found very commonly in the Black Mountains, but deep underground.
Morcarite is a very useful alloy, as it is used to create Wraivorn and Morgorite, both very deadly and therefore very valuable. Wraivorn is created by combining Morcarite with Galvorn, and Morgorite by alloying Morcarite and Gulduril
Wraivorn is used for making nearly impenetrable armor and demonic swords, Sauron's armour is made from Wraivorn. Morgorite can be used to enhance the abilities of poisonous blades.