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The next step up is Iron, then Iron + Coal (bought at the vendor) to make Steel.
Coal is also a drop.
I know that it drops from elemental exiles in Arathi Highlands, particularly the fire ones, but it could drop from others as well.
These creatures also drop elemental air, fire, earth, etc., which well for a good price in the AH. I think one air went for close to 50s.
Just some FYIs.