European Union's DRI Imports on the Rise
The European Union saw an uptick in its imports of direct reduced iron during the period of January to November 2024. According to calculations by GMK Center, based on Eurostat data, imports amounted to 2.53 million metric tons, a 7.2% year-on-year increase compared to the same period in 2023. This increase signifies the EU's ongoing demand for DRI, a key raw material used in steel production.
Country-Specific Trends in DRI Imports
Among the EU countries, several have emerged as the primary importers of DRI, reflecting varying trends in demand:
• Italy: Despite being the largest importer of DRI in the EU, Italy saw a decline of 13.3% y/y in its imports, bringing in 659.73 thousand metric tons.
• Germany: The second-largest importer, Germany experienced a significant drop of 27.4% y/y, importing 438.46 thousand metric tons.
• Austria: In contrast, Austria reported a substantial 44.5% increase in its imports, reaching 239.91 thousand metric tons.
• Spain: Spain saw a modest growth of 4% y/y, importing 242.07 thousand metric tons.
• Netherlands: The Netherlands had a dramatic surge in DRI imports, jumping from 100.73 thousand metric tons in 2023 to 392.4 thousand metric tons in 2024.
This mixed trend among the top importers shows how the EU's demand for DRI is diversifying, with some countries seeing growth while others face declines.
Key DRI Suppliers to the EU
Russia remains the largest supplier of DRI to the EU, despite a slight reduction in shipments. In January-November 2024, Russian exports to the EU totaled 994.65 thousand metric tons, a decrease of 6.3% y/y. Italy continued to be the primary destination for Russian DRI, importing 487.99 thousand metric tons, though this represented an 18.9% y/y drop. Belgium and Poland also played significant roles in importing Russian DRI, with Belgium's imports rising by 0.7% y/y to 207.16 thousand metric tons and Poland seeing a substantial increase of 180.2% y/y, importing 154.1 thousand metric tons.
In addition to Russia, other nations have emerged as key suppliers to the EU:
• Libya: Libya increased its exports to the EU by 4.5% y/y, shipping 423.2 thousand metric tons of DRI.
• Venezuela: Venezuela made a remarkable increase in exports to the EU, shipping 293.98 thousand metric tons of DRI, a 129.5% y/y rise.
These shifts suggest that while Russia still holds a dominant position, other countries like Libya and Venezuela are gaining a stronger foothold in the EU's DRI market.
November 2024 Surge in DRI Imports
November 2024 marked a significant increase in the EU’s monthly DRI imports. The EU imported 269.65 thousand metric tons of DRI in November 2024, a 61.8% increase compared to November 2023, and a 51.7% rise compared to October 2024. This surge marked a 5-month high in DRI imports and indicates that the demand for this material is rising, especially as steel producers gear up for new projects and production runs.
• Russian DRI Exports: In November, Russia's DRI exports to the EU reached 105 thousand metric tons, marking a 5.1% increase y/y and a notable 69.5% month-on-month surge.
• Libya's Export Activity: Libya did not supply DRI to the EU in November 2024, down from 19.6 thousand metric tons in November 2023 and 23.1 thousand metric tons in October 2024.
• Venezuelan Exports: Venezuela exported 27.1 thousand metric tons of DRI in November 2024. This was a significant increase from the 33.59 thousand metric tons exported in October 2024, though Venezuela had not shipped any DRI to the EU in November 2023.
Comparing 2023 and 2024 DRI Imports
While the current trend indicates growth, 2023 saw a decline in EU DRI imports, with a 11% drop compared to 2022, totaling 2.61 million metric tons. However, December 2023 marked a rebound, with the EU importing 213.12 thousand metric tons, a 19.9% rise from the previous month and a 146.5% increase from December 2022.
Russia remained the largest supplier in 2023, although shipments fell by 21.3% y/y, amounting to 1.19 million metric tons.
Summary of Key DRI Import Figures:
• Total EU Imports (Jan-Nov 2024): 2.53 million metric tons (+7.2% y/y)
• Top Importers: Italy (659.73 thousand metric tons, -13.3% y/y), Germany (438.46 thousand metric tons, -27.4% y/y), Austria (239.91 thousand metric tons, +44.5% y/y)
• Largest Supplier (Russia): 994.65 thousand metric tons (-6.3% y/y)
• Other Suppliers: Libya (423.2 thousand metric tons, +4.5% y/y), Venezuela (293.98 thousand metric tons, +129.5% y/y)
As the EU continues to diversify its DRI supply sources, it remains crucial for steel producers to adapt to these shifts in global trade dynamics. The demand for DRI, driven by the steel industry's need for raw materials, will continue to evolve, impacting the broader economic landscape for years to come.
