In 2023, the global production of direct reduced iron (DRI) achieved a record high of 135.7 million metric tons, reflecting a substantial 6.5% increase from the previous year. This notable rise, reported by Midrex, underscores a continued upward trend in the production of this critical steelmaking material. Over the past five years, global DRI output has surged by nearly 26%, amounting to an additional 27.6 million metric tons, highlighting the growing importance and demand for DRI in the steel industry.
Midrex Technologies, a leader in DRI production technology, accounted for approximately 80% of this global output in 2023. Their plants produced 75.7 million metric tons of DRI, marking a 3.0% increase compared to the previous year. This impressive performance reaffirms Midrex's pivotal role in meeting global demand and advancing production capabilities. The company's technologies continue to set benchmarks in efficiency and scale.
Notably, production figures varied significantly by region. Excluding operations in Russia and Iran, Midrex's plants produced 41.64 million metric tons of DRI. In Russia and Iran, the output was 34.36 million metric tons. Despite these robust figures, several plants faced operational constraints due to market conditions. For instance, facilities such as ArcelorMittal Point Lisas in Trinidad, ArcelorMittal in South Africa, Delta Steel in Nigeria, ESISCO in Egypt, Lion DRI in Malaysia, and NSCL National Steel Complex Ltd in Pakistan were inactive last year, impacting overall production.
Conversely, some plants exceeded their expected capacities. The Cleveland Cliffs plant in Toledo, Ohio, with a nominal capacity of 1.6 million metric tons per annum, operated 6% above its rated capacity. ArcelorMittal's Texas facility also set a new annual production record, and the Canadian ArcelorMittal plant achieved a record number of operating hours, demonstrating strong operational performance amid varying market conditions.
Looking forward, the trend of increased DRI production has continued into early 2024. In the first quarter, global production rose by 7.4% compared to the same period in 2023, reaching 28.09 million metric tons. India played a significant role in this growth, contributing 4.23 million metric tons of DRI. March 2024 saw 13 countries producing 9.56 million metric tons of DRI, reflecting a 9.4% increase from February of the same year, though this was a 4.8% decrease compared to March 2023.
