Global pig iron production increased by 1.2% y/y in January-May

In January-May 2023, the global production of pig iron increased by 1.2% compared to the same period in 2022 – up to 595.08 million tons. In May, the global production of pig iron amounted to 123.98 million tons, which is 3% less y/y and more by 1.4% m/m. This is reported by Ukrmetalurgprom with reference to WorldSteel Association’s data.

World production of pig iron by the blast furnace method for January-May 2023 was 548.23 million tons, and by DRI method – 46.85 million tons.

The largest pig iron producing countries in January-May 2023 are:

• China – 373.74 million tons (+3.2% y/y);
• India – 54.97 million tons (+7.8% y/y);
• Japan – 26.34 million tons (-5.2% y/y).

Ukraine for January-May 2023 produced 2.35 million tons of pig iron, which is 43.9% less compared to the same period in 2022. Thus, the country occupies the 17th place in the ranking of world pig iron producers. In May, 603,000 tons of pig iron were produced (+10.8% m/m and +53.8% y/y).

Ukrainian steelmakers are gradually increasing steel capacity in accordance with logistical and market opportunities. In particular, Zaporizhstal in March took out blast furnace №2 from forced hot preservation. From now on, the blast furnace shop of the enterprise will work with three blast furnaces. For the full recovery of steel production capacities in Ukraine, the unblocking of domestic seaports for iron and steel products is required.

After Russian troops blew up the Kakhovska HPP, capacity building was jeopardized due to restrictions on water consumption in some regions where iron and steel enterprises are concentrated. In particular, steel smelting and production of rolled steel are suspended at ArcelorMittal Kryvyi Rih.

As GMK Center reported earlier, in 2022, global pig iron production decreased by 3% compared to 2021 – to 1.39 billion tons. 1.28 billion tons of pig iron were produced by the blast furnace method, and 110.52 million tons – by DRI method.

In the top three producers of pig iron in 2022: China – 863.83 million tons (-0.8% y/y), India – 121.9 million tons (+4.4% y/y) , Japan – 64.1 million tons (-8.8% y/y). In 2022, Ukraine took 15th place in the ranking of world pig iron producers with an indicator of 6.39 million tons (-69.8% y/y).

Also, global steel production in 2022 decreased by 10.8% compared to 2021 – to 140.7 million tons. The top three producing countries: China – 1.013 billion tons (-2.1% y/y), India – 124 .7 million tons (+5.5% y/y), Japan – 89.2 million t (-7.4% y/y). Ukraine took 25th place with a result of 6.3 million tons (-70.7% y/y).