Global DRI production fell by 11% m/m in February

Global direct reduced iron (DRI) production in February 2024 decreased by 11.2% compared to the previous month – to 8.6 million tons. The figure increased by 7.6% compared to February 2023. This is evidenced by data from the WorldSteel Association, Kallanish reports.

The largest DRI producer among 13 countries during this period was India – 4.2 million tons, which is 17.9% more than in February 2023.

In recent years, global direct reduced iron production has skyrocketed as the push to decarbonize the steel industry has accelerated. In 2023, according to WorldSteel, DRI production amounted to 136.4 million tons, up 65.3% from 2014. According to EASDS forecasts, by 2050, the production of relevant products will reach 411 million tons per year.

Part of the demand for DRI comes from the goal of reducing CO₂ emissions in the steel industry by 80-95% by 2050. More and more companies around the world are taking steps to reduce their carbon footprint and implementing relevant modernization projects.

As GMK Center reported earlier, global DRI production in 2023 increased by 7.4% compared to 2022, to 135.51 million tons from 126.16 million tons a year earlier. India accounted for more than 36% of the total production – 49.33 million tons (+16.7% y/y).

According to World Steel Dynamics, by 2030, global DRI production will increase by 56.2% compared to the base year 2019, and by 40% compared to 2022 – up to 175 million tons. The largest growth in DRI production is expected in the European Union and MENA countries.

In 2023, the EU reduced imports of direct reduced iron by 11% compared to 2022, to 2.61 million tons. Russia is the largest supplier of DRI – 1.19 million tons (-21.3% y/y).